6. The Tagay Ta Company has breweries in two cities; the breweries can supply the following numbers of barrels of draft beer to the company's distributors each month:

Brewery Monthly Supply (bbl)

A. Dipolog 3,500

B. Dapitan 5,000

8,500

The distributors, which are spread throughout six municipalities, have the following total monthly demand:

Distributor Monthly Demand (bbl)

1. Polanco 1,600

2. Roxas 1,800

3. Manukan 1,500

4. Jose Dalman950

5. Sindangan 1,250

6. Sibutad 1,400

8,500

The company must pay the following shipping costs per barrel:

To (cost) in pesos

From 1 2 3 4 5 6

A 50 35 60 45 80 75

B 25 65 40 55 20 65

Solve this problem by using the computer.

7. In Problem 6, the Tagay Ta Company management negotiated a new shipping contract with a trucking firm between its Dipolog brewery and its distributor in Sindangan. This contract reduces the shipping cost per barrel from P80 per barrel to 65 per barrel. How will this cost change affect the optimal solution?