Quantitative Analysis in Business

Question No.2: [LO3, L041 2 Marks A product is produced by four factories F1, F2, F3, and F4. Their production capacities are: F1:47 units, F2:67 units, F3:27 units and F4:57 units. These factories supply the product to four stores, demand of which is 22, 32, 102, and 17 units respectively. Unit transportation cost in dollars from each factory to each store is given in the following table. Determine the extent of deliveries from each of the factories to each of the stores so that the total production and transportation cost is minimum. Factories Stores Supply SI S2 S3 S4 4 6 8 13 47 FI F2 14 12 10 8 67 F3 11 1 7 10 27 F4 10 12 14 9 57 Demand 22 32 102 17