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POLAR VORTEX Polar Vortex manufactures air conditioners that are sold to five different retail customers across the United States. The company is evaluating its manufacturing

POLAR VORTEX

Polar Vortex manufactures air conditioners that are sold to five different retail customers across the United States. The company is evaluating its manufacturing and logistics strategy to ensure that it is operating in the most efficient manner possible. The company can produce air conditioners at six plants across the country and stock these units in any of four different warehouses. The cost of manufacturing and shipping a unit between each plant and warehouse is summarized in the following table along with the monthly capacity of each plant:

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Warehouse Warehouse Warehouse Warehouse Capacity 1 2 3 4 Plant 1 $?00 $1,000 $900 $1,200 300 Plant 2 $800 $500 $500 $?00 200 Plant 3 $850 $500 $?00 $500 300 Plant 4 $500 $800 $500 $500 250 Plant 5 $500 $500 $450 $?00 350 Plant 6 $?00 $500 $?50 $500 400 Similarly. the perunit cost of shipping units from each warehouse to each customer is given in the following table. Customer Customer Customer Customer Customer 1 2 3 4 5 Warehouse 1 $40 $80 $80 $90 $50 Warehouse 2 $80 $50 $75 $40 $35 Warehouse 3 $55 $40 $85 $80 $80 Warehouse 4 $80 $30 $80 $50 $80 The monthly demand for each customer is summarized below: Customer Customer Customer Customer Customer 1 2 3 4 5 Demand 200 300 200 150 250

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