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Fork Motor Company is an automobile manufacturer operating in the US. It has divided its market into three regions and has built three regional distribution

Fork Motor Company is an automobile manufacturer operating in the US.

It has divided its market into three regions and has built three regional distribution centers (RDC) to serve these markets. The RDCs are located in California, Florida and Texas.

The annual demand at each regional distribution center is estimated as follows and the company wants to meet all the demand.

- RDC California: 1.5M automobiles (i.e., 1.5 million)

- RDC Florida: 0.5M automobiles

- RDC Texas: 1M automobiles

Fork Motor has two plants in Michigan and Nevada and wants to distribute the automobiles to the RDCs at the lowest cost. So they need to decide how many cars to ship from each of the plants to each of the RDCs to achieve minimum cost. You are asked to model and solve this allocation problem.

Below, you are given the shipping distance between Fork Motors facilities in miles.

Plant Michigan

Plant Nevada

RDC California

2000

300

RDC Florida

1000

1300

RDC Texas

1200

800

The head of supply chain informs you that you need to consider the capacity limits of the plants. The Michigan plant is much larger than the one in Nevada. He adds that the capacity limits are as follows:

- Plant Michigan: 2.5M

- Plant Nevada: 0.7M

The company estimates that transportation of each car will cost 8.53 dollars per mile.

What is the minimum cost of shipping cars to RDCs in million dollars?

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