A company has three plants at locations A, Band C which produce the same product. It has
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A company has three plants at locations A, Band C which produce the same product. It has to supply this to buyers located at D, E and F. The weekly plant capacities for A, Band Care 100, 800 and 150 units respectively, while the buyer requirements are 750, 200 and 500 units respectively for D, E and F. The unit shipping costs (in Rs) are given here.
Assume that the penalty for failing to supply buyer requirement is Rs 4, Rs 3 and Rs 3 per unit in respect of D, E and F respectively.
Determine the optimal distribution for the company so as to minimise the cost of transportation and penalty payable.
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