2. DeMont Chemical Company manufactures fertilizer in three plants, referred to as P1, P2,
and P3. The company ships its products from plants to two central DCs, designated D1
and D2, and then from the DCs to five regional warehouses, W1-W5. At the DCs, no
demand occurs and no capacity limits exist. Demand is associated with the warehouses,
and capacities exist at the plants. The system is described in the following two tables, one
for each stage. The units for capacity and demand are pounds of fertilizer, and the unit
costs are given per pound.
(To) DC
(From) plant
P1
P2
P3
D1
D2
$1.36
$1.28
1.28
1.35
1.68
1.55
(To) warehouse
(From) DC
WI
W2
W3
W4
W5
D1
$0.60
$0.36
$0.32
50.44
$0.72
D2
$0.80
$0.56
$0.42
$0.40
50.55
Requirement
1250
1000
1600
1750
1500
What is the minimum transportation cost of the network?
Capacity
2400
2750
2500