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Spigen is a manufacture of cell phone protection cases, which operates within the U.S. market. Currently, the company has two type of cases that are

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Spigen is a manufacture of cell phone protection cases, which operates within the U.S. market. Currently, the company has two type of cases that are provided to the market: TPU cases (T) and Metal cases (M). The company has two manufacturing plants within the U.S., located at Salt Lake City and Indianapolis. Four warehouses within U.S. have been utilized to satisfy the demand all over the country, located at Seattle(S), Dallas(D), Nashville(N) and New jersey(NJ). Given the difference in tax rate and labor cost between Utah and Indiana, the production cost for T and M varies, moreover the manufacturing capacity is also different at this two plant. Transportation cost is $0.5/ 100 units, mile, and more details are provided in the table below: Cost ($/unit) Capacity (units) Case Case Salt Lake Indianapolis City Salt Lake City Indianapolis T 2 3 T 1800 1200 . M 8 00 7 M 2400 700 Distance Between Plant and Warehouses (miles) Plant Seattle Dallas Nashville New Jersey Salt Lake City 900 1200 1600 2000 Indianapolis 2200 900 300 700 Demand at Warehouses (units) Case Seattle Dallas Nashville New Jersey T 800 1000 300 600 M 1000 900 600 500 In order to manage the supply chain network efficiently, please find the optimal distribution plan for the company to operate. When we generate the objective function, we are calculating the total transportation cost between plants and warehouses, which are determined by the distance between any two facilities. True or False? True False

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