Milky Milk has three (3) warchouses and five (5) retail stores. The company needs to transport its milk tanks from the warehouses to the
"Milky Milk" has three (3) warchouses and five (5) retail stores. The company needs to transport its milk tanks from the warehouses to the stores. The supply in each warehouse, the demand of each store and the transportation cost per gallon from each warehouse to each store are all given in the table below: Store Supply 170 150 1 2 3 4 Warehouse 1 $2.10 $4.10 $1.60 $2.00 $3.30 Warehouse 2 $0.90 $4.20 $5.50 $3.10 $3.60 Warehouse 3 S$3.80 $5.10 $0.80 $4.00 $1.80 130 Demand 35 70 65 180 40 For example, in warehouse 2 the company has 150 gallons of milk; the demand in store 5 is for 40 gallons; the cost of transporting one (1) gallon of milk from warehouse 2 to store 5 is $3.60. The objective is to satisfy the demand in each store while minimizing transportation costs. You may assume that the company can transport parts of a gallon; for example, the company may transport 3.3 gallons of milk from warehouse X to store Y. Answer the following and also submit the Solver spreadsheet with your answers. Please indicate the actual answers in this document. 1. What is the total cost of satisfying all the demand? (10 points) 2. How much milk should be transported from each warehouse to each store to satisfy the demand? (25 points)
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