Krappy Kraft Beer Inc. has two breweries in BC, with monthly capacities and production costs as follows:

Brewery 1: Capacity/month = 10,000 six-packs; Cost per six-pack = $1.60

Brewery 2: Capacity/month = 9500 six-packs; Cost per six-pack = $1.80

The product is channeled through 4 different distributors. Barts Beer is so popular that all stock that can be brewed is quickly purchased by the distributors, but the distributors can only handle a certain amount of product per month. Also, each distributor is willing to pay a different amount per six-pack to Bart:

Distributor Capacity/month

Distributor A: Capacity/month = 8500; Price per six-pack = $10.75

Distributor B: Capacity/month = 4500; Price per six-pack = $9.95

Distributor C: Capacity/month = 5500; Price per six-pack = $11.00

Distributor D: Capacity/month = 6500; Price per six-pack = $10.50

Barts Beer Inc. has to pay the cost of shipping to the 4 distributors. The shipping cost per six-pack from the breweries to distributors is as follows:

Brewery 1: A = $1.00; B = $1.15; C = $1.85; D = $2.00

Brewery 2: A = $0.65; B = $.75; C = $1.50; D = $1.75

Formulate an LP model that will enable Barts Beer to maximize its profits each month.

Complete the following:

1. a) Develop the Transportation Network.

2. b) Formulate the problem into proper LP format.

3. c) Use Solver to determine the optimal solution. State the optimal solution in the context of the business

   problem.