Finnish Furniture manufactures tables in facilities
located in three cities -- Reno, Denver and
Pittsburgh.
The tables are then shipped to three retail stores
located in Phoenix, Cleveland, and Chicago.
Management wishes to develop a distribution
schedule that will meet the stores demands at the lowest possible
cost.
The shipping cost per unit from each of the
sources to each of the destinations is shown in the following
table.
From/To
Phoenix
Cleveland
Chicago
Reno
10
16
19
Denver
12
14
13
Pittsburgh
18
12
12
The available tables are 120 units from Reno, 200
from Denver and 200 from Pittsburgh.
Cleveland has demand for 160 units, Chicago has
demand for 180 units, and Phoenix has demand for 140
units.
How many units should be transported from each
manufacturing facility to each retail store if transportation costs
are to be minimized?