Distribution plan that minimizes total shipping cost


Consider the following transportation table where the values in the upper-right-hand corner of each cell represent unit shipping cost:

To: Warehouse Warehouse Warehouse

From: # 1 # 2 # 3 Supply

Plant A 50 32 40 700

Plant B 16 30 20 200

Plant C 35 28 42 200

Demand 300 400 400

a. Formulate it as a linear programming problem.

b. Use Excel and develop a distribution plan that minimizes total shipping cost.

c. If route 3-A is a unacceptable for some reason, what distribution plan would be optimal? What would its total cost be?

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Business Management: Distribution plan that minimizes total shipping cost
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