How to minimize the cost of meeting demands


Problem:

General Ford produces cars in Los Angeles and Detroit and has a warehouse in Atlanta. The company supplies cars to customers in Houston and Tampa. The costs of shipping a car between various points are listed in a file where a dash means that a shipment is not allowed. Los Angeles can produce up to 1100 cars, and Detroit can produce up to 2900 cars. Houston must receive 2400 cars, and Tampa must receive 1500 cars.

a. Determine how to minimize the cost of meeting demands in Houston and Tampa.

General Ford data

Unit shipping costs

                                    To

                                    LA               Detroit             Atlanta             Houston          Tampa


From LA                         -                  $140                $100                 $90               $225

Detroit                        $145                  -                   $111                 $110              $119

Atlanta                        $105                $115                -                      $113               $78

Houston                       $89                 $109                $121                    -                    -

Tampa                        $210                $117                 $82                     -                    -

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Accounting Basics: How to minimize the cost of meeting demands
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