Minimum-cost shipping schedule


Adirondack Paper Mills, Inc., has paper plants in Augusta, Maine and Tupper Lake, New York.  Warehouse facilities are located in Albany, New York and Portsmouht, New Hampshire.  Distributors are located in Boston, New York and Philadelphia.  The plant capacities and distributor demands for next month are as follows:

Plant

Capacity (units)

 

Distributor

Demand (units)

Augusta

300

 

Boston

150

Tupper Lake

100

 

New York

100

 

 

 

Philadelphia

150

The unit transportation costs ($) for shipments from the two plants to the two warehouses and from the two warehouses to the three distribution centers are as follows:

 

Warehouse

 

Plant

Albany

Portsmouth

 

Augusta

7

5

 

Tupper Lake

3

4

 

 

 

 

 

 

Distributor

Warehouse

Boston

New York

Philadelphia

Albany

8

5

7

Portsmouth

5

6

10

Formulate the Adirondack Paper Mills problem as a linear programming problem.  What is the minimum-cost shipping schedule?

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Accounting Basics: Minimum-cost shipping schedule
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