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in Rapid City and Spearfish. The pallets of orange juice bottles are first shipped to the three distribution centers located in Mobridge, Pierre, and
in Rapid City and Spearfish. The pallets of orange juice bottles are first shipped to the three distribution centers located in Mobridge, Pierre, and Murdo, which serve as intermediate or transshipment points before being delivered to their final customers located at Brookings, Sioux Falls, and Vermillion. The number of pallets of 12 oz. orange juice bottles available at each plant is 300. The cost of shipping 1 pallet of 12 oz. orange juice bottles from the manufacturing plants to the distribution centers are as follows: Manufacturing Plants Rapid City Spearfish Distribution centers Mobridge Pierre Murdo $16 $10 $12 17 15 These distribution centers supply customers, located in Brookings, Sioux Falls and Vermillion. Each distribution center is able to supply the following pallets of 12 oz. orange juice bottles on a monthly basis: to Distribution Center Supply 150 Mobridge Pierre 175 Murdo 275 Total 600 pallets of 12 oz. orange juice bottles Each city has a demand for the following pallets of 12 oz. orange juice bottles per month: Demand 200 Customers Brookings Sioux Falls Vermillion Total 100 300 600 The cost of transporting 1 pallet of 12 oz. orange juice bottles from each distribution center to each city is shown in the following table: Distribution Center Mobridge Pierre Murdo Brookings $6 7 Demand Centers Sioux Falls $8 11 5 Vermillion $10 11 12 The problem is to determine the following I. II. How many pallets of orange juice bottles need to be transported from each manufacturing plant to each distribution center on a monthly basis to minimize the total cost of transportation. How many pallets of orange juice bottles need to be transported from each distributor center to each city on a monthly basis to minimize the total cost of transportation.
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