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The Integrated Products Corporation (IPC) is developing a monthly shipping plan for its computer systems. The following information affects this plan: Plant Monthly Capacity Warehouse

The Integrated Products Corporation (IPC) is developing a monthly shipping plan for its computer systems. The following information affects this plan:

Plant Monthly Capacity Warehouse Monthly Requirements
Atlanta 1 600 Chicago 500
El Paso 2 400 Dallas 1 000
Denver 800
New York 1 200
San Jose 500

Plant Warehouse Shipping Cost ($/Computer) Plant Warehouse Shipping Cost ($/Computer)
Atlanta Chicago 45 El Paso Chicago 60
Dallas 50 Dallas 40
Denver 70 Denver 45
New York 55 New York 105
San Jose 100 San Jose 50

a) What shipping plan will minimize monthly shipping costs? 12 marks

b) What will be the monthly shipping costs of the optimal shipping plan from Part a? 8 marks

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