Chicago Steel has two factories that manufacture steel for four different construction projects located at four different sites. The demand for the steel components for the four projects, Project A, Project B, Project C, and Project D, are 3250, 3600, 4250, and 2900 tons, respectively. The shipping details are as below

Production details:

Factory	Maximum Capacity (tons)
F1	6500
F2	8500

Shipping Details (with per-unit shipping cost):

	Project
Factory	A	B	C	D
F1	$7	$7	$4	$8
F2	$5	$6	$3	$7

Determine the optimum supply of steel to each project from each factory, to minimize the total transportation cost.

What would be the effect on the optimal solution and the optimal cost if the demand at Project D increases to 4000 tons?

Suppose a new factory (F3) can be built that can supply all the demand for project B and D. The transportation cost from F3 to A is $8 per tons, from F3 to B is $6.5 per tons, from F3 to C is $5 per tons, and from F3 to D is $9 per tons. Does building this new factory help with further minimizing the transportation costs? Explain. Please make sure you reset all the parameters to their original values for this part.