Sazerac Company

Sazerac Company finds that their bourbon and rye whiskeys are subject to evaporation in the tanker trucks used to distribute this product from the distilleries to their local rack houses for their new tasting rooms and restaurants (called Rack House Restaurant) modeled after what Coopers Hawk has done with wine. The average amount of evaporation depends on the distance traveled, the average temperature and the average humidity levels in the air. The following table shows the corresponding yield loss that has been observed to occur on each of its shipping routes.

	Rack House Restaurant
Distilleries	Atlanta	Boston	Chicago	Denver
Bardstown	0.24	0.19	0.07	0.11
Lawrenceburg	0.10	0.05	0.04	0.15
Pikesville	0.26	0.41	0.32	0.27

The following table show the cost to ship a gallon from a distillery to a restaurant.

	Rack House Restaurant
Distilleries	Atlanta	Boston	Chicago	Denver
Bardstown	$0.60	$0.56	$0.22	$0.40
Lawrenceburg	$0.36	$0.30	$0.28	$0.58
Pikesville	$0.65	$0.68	$0.55	$0.42

Each distillery has a capacity of producing 16,000 gallons of whiskey per year. The demand at each of the Rack House Restaurants is Atlanta, 8,000 gallons; Boston, 10,000 gallons; Chicago, 12,000 gallons; and Denver 9,000 gallons. Marianne Barnes, the master distiller for Sazerac, knows that due to yield losses, that she must ship more then the total demand of 39,000 gallons, but she doesnt know how much more because she doesnt know which shipping routes will be used.

Marianne, wants you to find the lowest cost solution to ship whiskies from the distilleries to the restaurants so she will know how much whiskey will be required for this venture.

Please use excel solver. Check Value: $15,498