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Susan's kitchen gadgets (SKG) produces ovens at two manufacturing plants: St. Louis, Missouri and Milwaukee, Wisconsin. After leaving the plant, they are shipped to
Susan's kitchen gadgets (SKG) produces ovens at two manufacturing plants: St. Louis, Missouri and Milwaukee, Wisconsin. After leaving the plant, they are shipped to distributions centers in Indianapolis, Atlanta, Denver, and Boston. The table below shows the per unit cost of shipping between the plants and distribution center as well as capacities and demands. As SKG's supply chain manager, your problem is to determining how much to ship between each plant and distribution center to minimize the total transportation cost while meeting all constraints - otherwise, you may not be employed at SKG much longer. Indianapolis Atlanta Denver Boston Capacity St. Louis Milwaukee Demand $10.10 $6.75 $15.19 $13.92 1,275 705 1,005 $20.52 $19.04 2,550 $26.57 870 $14.13 1,305 a. (6 pts) Develop an algebraic model for this problem. b. (6 pts) Solve this problem in Excel. c. (3 pts) How many units are shipped from each plant i to each warehouse j? d. (3 pts) What is the total shipping cost? e. (3 pts) Which shipping route cost SKG the most money?
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