Assignment:
Nestle has two European manufacturing plants (A and B) which produce 900000 and 1000000 pounds of chocolate per month.
They distribute this product through three wholesalers (1, 2, and 3).
For September, the wholesale demand for product is 500000, 850000 and 650000 pounds respectively for each wholesaler )not counting any material already on hand).
The transportation costs(in dollars per 1000 pounds) are:
|
From/To
|
1
|
2
|
3
|
|
A
|
4.0
|
4.5
|
5.0
|
|
B
|
6.0
|
5.0
|
3.5
|
|
1
|
NA
|
2.5
|
4.4
|
|
2
|
2.5
|
NA
|
2.0
|
|
3
|
4.4
|
2.0
|
NA
|
- For September the route between B and wholesaler 1 is closed.
- What is the minimum cost of distribution and how much will be shipped along each route?
Provide complete and step by step solution for the question and show calculations and use formulas.