Question
A soft drink manufacturing company has three factoriesone in Orlando, one in Tampa, and one in Port St. Luciethat supply soft drink bottles to three
A soft drink manufacturing company has three factoriesone in Orlando, one in Tampa, and one in Port St. Luciethat supply soft drink bottles to three warehouses located in the city of Miami. The associated per-unit transportation cost between the factories and the warehouses is provided in the table below.
Transportation Costs ($) | |||
Factories/Warehouse (W) | W1 | W2 | W3 |
Orlando | 7 | 4 | 5 |
Tampa | 7 | 6 | 4 |
Port St. Lucie | 5 | 5 | 6 |
- The factory in Orlando has a capacity of 14,000 units. - The factory in Tampa has a capacity of 25,000 units. - The factory in Port St. Lucie has a capacity of 23,000 units. The requirements of the warehouses are:
Warehouse | Requirement (Bottles) |
W1 | 18,000 |
W2 | 19,000 |
W3 | 22,000 |
The management wants to know much of the companys production should be shipped from each factory to each warehouse in order to minimize the total transportation cost.
1. What is the optimal total cost?
2. How much should be shipped from Tampa to W3? (Quantity in number of soft drink bottles)
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