The Calcio Coal Company produces coal at four mines and ships it to four power plants (P1-P4).

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The Calcio Coal Company produces coal at four mines and ships it to four power plants (P1-P4). The cost per ton of producing coal and the production capacity (in tons) for each mine are known. The number of tons of coal demanded by each customer is also known. The cost (in dollars) of shipping a ton of coal from a mine to each plant is available as well. The following table provides the data:
P1 P4 Cost P2 P3 Capacity 125 100 150 120 Mine 1 Mine 2 Mine 3 Mine 4 15 15 10 12 50 57 14 5 3 5 11 12 55 6. 8. 11 61 13

a. Calcio wishes to minimize the cost of transporting coal from its mines to its plants. What is the minimum cost?
b. What is the transportation schedule that achieves the minimum cost in (a)?

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Management Science The Art Of Modeling With Spreadsheets

ISBN: 1301

4th Edition

Authors: Stephen G. Powell, Kenneth R. Baker

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