Question
A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 120 widgets per day. Plant D can produce 60
A firm has 4 plants that produce widgets. Plants A, B, and C can each produce 120 widgets per day. Plant D can produce 60 widgets per day. Each day, the widgets produced in the plants must be shipped to satisfy the demand of 3 customers. Customer 1 requires 65 units per day, customer 2 requires 120 units per day, and customer 3 requires 235 units per day. The shipping costs for each possible route are shown in the table below:
Shipping Costs per unit at Plant | Customer 1 | Customer 2 | Customer 3 |
---|---|---|---|
A | $40 | $35 | $20 |
B | $25 | $35 | $15 |
C | $15 | $20 | $25 |
D | $20 | $30 | $40 |
The firm needs to satisfy all demand each day but would like to minimize the total costs.
What is the minimum daily shipping cost that the firm can achieve?
A.$7450
B. $7,850
C. $8,250
D.$9,050
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