Decision 2.

Penny Chairs has two plants that manufacture and ship chair parts to other manufacturers. Penny Chairs sells and ships to four manufacturers. The cost of shipping one chair from a plant to a customer is given in the following table.

Plant/Customer

Bruderheim Cardston

Mesquite Furniture

$1.70 $1.95

Tonopah Fashions

$2.30 $2.35

Sumerlin Appliance

$2.50 $1.65

Charleston Furnishings

$2.15 $2.95

Exact Customer demand/week (cases)

1200

2000

2500

1400

The plant in Bruderheim has a capacity of 3500 cases per week, and the Cardston plant can produce 4000 cases per week.

Derive the minimum cost shipping plan.

Tonopah Fashions is experiencing some financial problems. If Tonopah were to reduce its order

by 1000 cases, how would the minimum cost shipping plan change?

My teacher said total cost is equal to 13,830