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A logistics manager is organizing product distribution plans based on the following data: a. There are three manufacturing locations with the following capacities: Denver (2,000),

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A logistics manager is organizing product distribution plans based on the following data: a. There are three manufacturing locations with the following capacities: Denver (2,000), Milwaukee(3,000), Columbia (2,000). Data are in tons. b. There are three customer locations with the demand in tons: Los Angeles (3,000), Cleveland (3,000) and Chicago (1,000). Lane costs are given in the figure, 1 Determine total distribution cost. $45,500 Production Capacity Los Angeles Cleveland Chicago 1 2 From 3 Denver 4 Milwaukee 5 Columbia Demand 6 requirement $6 $11 $12 $3 $3 $6 $2 $2 $4 2,000 3,000 2,000 3,000 3,000 1,000 7,000 Los Angeles Cleveland Chicago Production 1.000 1,000 3,000 10 To From 12 Denver 13 Milwaukee 14 Columbia 15 Demand 16 17 18 2.000 3,000 2,000 3,000 2,000 7,000 3,000 1,000 $ 48,500 19 20

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