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The company X manufactures a type of product in 4 different production plants their locations: Manchester, Londan, Birmingham, and Winchester. These production facilities can
The company X manufactures a type of product in 4 different production plants their locations: Manchester, Londan, Birmingham, and Winchester. These production facilities can produce 130, 120, 90, and 70 palettes (there are 1530 units of product in each pallet) per month, respectively. The company supplies five warehouses that require 100, 65, 68, 70, and 55 pallets per month. The company plans to minimize the sum of facility costs and transportation costs. Transportation costs per pallet from each production facility to each warehouse are shown below: Westminster Southwark Lambeth Chelsea Fulham Supply Manchester London 300 Birmingham 1130 810 Winchester 810 Lambeth Winchester 26.000.000 24.000.000 450 22.000.000 1100 Westminster Southwark 14.000.000 Lambeth 12.000.000 Chelsea 10.000.000 Fulham 9.000.000 1240 980 Facility costs are shown below: Facilitiy Cost Manchester 30.000.000 28.000.000 Southwark 620 750 1190 990 1100 250 Demand 100 Palettes 65Palettes 68 Palettes 70 Palettes 55Palettes 1420 1210 1212 130 Palettes 1430 120Palettes 280 90 Palettes 400 70 Palettes Solve the question using the least cost method.
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