Discussion about distribution costs from each plant


Problem: A company that produces yogurt has plants in four locations: 1) Preston, Idaho 2) New Ulm, Minnesota 3) Carthage, Texas 4) Coalwood, West Virginia. The annual capacity of each plant to produce yogurt is 10,300, 12,400, 11,300, and 12,700 tons, respectively. To cover demand, the company wants to ship 7,700 tons to a distribution center in Modesto, California, 6,200 to South Bend, Indiana, 10,200 to Talladega, Alabama, and 8,400 to Punxsutawney, Pennsylvania. The per ton distribution costs from each plant to each distribution center are given in the table below:

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