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Klein Chemicals, Inc., produces a special - based material that is currently in short supplyFour of Klein's customers have already placed orders that together exceed
Klein Chemicals, Inc., produces a special based material that is currently in short supplyFour of Klein's customers have already placed orders that together exceed the combined capacity of Klein's two plants. Klein's management faces the problem of deciding how many units it should supply to each customerBecause the four customers are in different industries, different prices can be charged because of the various industry pricing structures. However, slightly different production costs at the two plants and varying transportation costs between the plants and customers make a sell to the highest bidderstrategy unacceptable. After considering price, production costs, and transportation costs, Klein established the following profit per unit for each plantcustomer alternative. Customer Plant E DDD; D Clifton Springs $ Danville $ The plant capacities and customer orders are as follows
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