Question
A company manufactures its products in two plants, one on the east coast of the United States (US) and the other in Europe. It has
A company manufactures its products in two plants, one on the east coast of the United States (US) and the other in Europe. It has warehouses for distributing products in the US, Europe and South America. The US plant has a capacity of 10,000 units per month and the Europe plant capacity is 5,000 units per month. Demand in the US is 8,000 units, demand in Europe is 2,000 and demand in South America is 5,000 units. The cost to ship the product from the US to South America is $5.00 per unit, from the US to Europe is $3.00 per unit, from Europe to the US is $3.25 and from Europe to South America $5.50. Cost to ship within a country (i.e. Europe to Europe or US to US) is $1.00 per unit. Find the lowest cost shipping schedule and calculate the transportation cost associated with your schedule. (Just use a heuristic rule. No need to use solver for this problem.)
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