Question
John Appleton owns a sod company based in Pocatello, Idaho. He sells his sod by the truckload to 11 different nurseries across Southern Idaho from
John Appleton owns a sod company based in Pocatello, Idaho. He sells his sod by the truckload to 11 different nurseries across Southern Idaho from Payette to Idaho Falls. His company started with a sod farm in Pocatello. He soon began selling enough sod in the western part of the state that he decided to buy a larger sod farm near Boise. Currently, the Pocatello farm produces 800 truckloads of sod a year. The Boise farm produces 1000 truckloads a year. This is not enough to keep up with the demand for sod from the nurseries, who could sell nearly 3000 truckloads of sod. Because the nurseries prefer John's sod to their alternative suppliers, John has agreed to supply at least 10 truckloads of sod to each nursery each year. It is difficult for John to manage shipments to the nurseries from his farms. He constantly worries that his shipping costs are higher than they should be. Use Solver and the shipping model on the Sod worksheet to determine how many truckloads of sod he should ship to each nursery from each farm in order to minimize his overall shipping costs. As part of your analysis, make sure that you 1) ship all of the sod available at each farm without exceeding what is available, 2) do not ship a partial truckload of sod, 3) do not ship more than the demand for sod to any nursery, and 4) ship at least 10 total truckloads of sod to each nursery.
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