Question: Thomas Industries and Washburn Corporation supply three firms (Zrox, Hewes, Rockwright) with customized shelving for its offices. They both order shelving from the same two manufacturers, Arnold Manufacturers and Supershelf, Inc.
Currently weekly demands by the users are 100 for Zrox, 70 for Hewes, and 50 for Rockwright. Arnold can supply atmost 120 units and Supershelf can supply at most 100 units to its customers.
Because of long standing contracts based on past orders, unit costs from the manufacturers to the suppliers are:
ThomasWashburn
Arnold 49
Supershelf 7 5
The costs to install the shelving at the various locations are:
ZroxHewesRockwright
Thomas 1 67
Washburn 3 4 3
Find the quantities to be shipped from each source to each destination to minimize the total shipping cost.