Dana Johnson Corp has four plants in Decatur, Minneapolis, Carbondale, and E. St. Louis with different production capacities. Note thatproduction capacity is the maximum amount the plant can produce, but the plant does not have to produce that many if not needed. The finished goods are shipped from four plants to three warehouses in Blue Earth, Ciro, and Des Moines according to the demands expected at these warehouses. TABLE 1 shows the production costs per unit and production capacities at each plant. Note that production at each plant has used regular time (RT) hours; production using overtime (OT) hours with a higher unit production cost is available only at the Minneapolis plant, when needed.

TABLE 1 OT Minneapolis OT $65 Minneapolis 110 Production cost per unit RT Decatur Minneapolis Carbondale E. St. Louis $50 $58 $70 $40 Production capacity RT Decatur Minneapolis Carbondale E. St. Louis 300 200 150 150