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Problem 4: Heart Start produces automated external defibrillators (AEDS) in each of two different plants (A and B). The unit production costs and monthly

 

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Problem 4: Heart Start produces automated external defibrillators (AEDS) in each of two different plants (A and B). The unit production costs and monthly production capacity of the two plants are indicated in the table below. The AEDs are sold through three wholesalers. The shipping cost from each plant to the warehouse of each wholesaler along with the monthly demand from each wholesaler are also indicated in the table. How many AEDs should be produced in each plant, and how should they be distributed to each of the three wholesaler warehouses so as to minimize the combined cost of production and shipping? Plant A Plant B Monthly Demand Unit Shipping Cost Warehous e 2 Warehous e 1 $22 $16 80 $14 $20 60 Warehous e 3 $30 $24 70 Unit Productio n Cost $600 $625 Monthly Productio n Capacity 100 120 Formulate this problem as a transportation problem by constructing the appropriate parameter table and find the optimal solution.

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