Background

ITC Chemicals, Inc. can manufacture a chemical solvent that is used in many industrial products.

The solvent is the same regardless of the plant that produces it. The following departments have provided information.

Marketing

The demand for this product from each of the customers 1, 2, and 3 is 60, 50, and 40 tons respectively.

Production

Three factories can supply any of three customers with a particular product. Maximum production at factories located in Navarre, Mary Ester and Fort Walton Beach are 40, 70, and 65 tons respectively. Production costs are $12.00/ton at the Navarre plant, $11.00/ton at the Mary Ester plant, and $13.00/ton at the Fort Walton Beach plant.

Transportation

The shipping costs ($/ton) are:

Factories

Customers

I

2

3

Navarre

4.5

3.1

4.2

Mary Ester

2.2

3.5

2.4

Fort Walton Beach

1.7

1.6

2.4

Management

Determine the quantity of product to be supplied from each factory to each customer so as to

minimize total costs.