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Company A is planning next week's shipping routes from its three manufacturing plants to its four distribution centers. The plants' capacity and the distribution centers'
Company A is planning next week's shipping routes from its three manufacturing plants to its four distribution centers. The plants' capacity and the distribution centers' precise demand are all expressed in cartons of products and are listed in the table below. The unit shipping costs are also given in the table below. (To) Warehouse From plant Atlanta Nashville Chicago Lincoln Capacity Detroit $0.60 $0.56 $0.32 $0.40 10000 Cleveland $0.36 $0.30 $0.28 $0.58 15000 Indianapolis $0.65 $0.68 $0.55 $0.42 10000 Demand 8000 10000 8000 7000 Please use an LP model to find the minimum cost shipping plan. 1. What is the optimal total shipping cost for next week? 2. The company policy requires that every shipping route must be used. In particular, the shipping volume on any route out of a plant must be at least 20% of the total volume leaving that plant. By how much does the optimal total shipping cost increase as a result of this "20% floor" policy
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