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This one question has two parts. (: 29. Consider the table below, representing the cost of shipping one unit of a good from each source

This one question has two parts. (:

29. Consider the table below, representing the cost of shipping one unit of a good from each source (New Jersey, Chicago, and Denver) to each destination (Atlanta, Houston, Los Angeles, and Seattle). Assume no fixed costs and that all three sources are available for operation. Demand and capacity are also as given in the table.

Atlanta Houston Los Angeles Seattle Capacity
New Jersey $15 $10 $30 $18 40
Chicago $9 $12 $18 $15 50
Denver $20 $8 $12 $10 40
Demand 30 20 40 25

Determine how many units should be shipped from each source to each destination so as to minimize cost of transshipment.

a. From these results we know:

  1. Atlanta will receive all 30 units demanded from New Jersy.
  2. Seattle will receive all 20 units demanded from Chicago.
  3. Los Angeles will receive all 40 units demanded from Denver.
  4. All of the given options are correct.

b. Looking again at your results from the previous part, we also know that:

  1. We are using all of our capacity in our Chicago and Denver plants.
  2. We are using all of our capacity in our Chicago and New Jersey plants.
  3. We are using all of our capacity in our New Jersey and Denver plants.
  4. We have excess capacity in every one of our plants.

Thank you, will thumbs up! (:

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