Question

A company ships product from each of its three factories to each of its 5 distributors....

A company ships product from each of its three factories to each of its 5 distributors. The capacity, demand, and shipping cost information is provided as follows:

Demand                                      Capacity

D1: 1400                                    F1: 2450

D2: 5010                                    F2: 5350

D3: 3200                                    F3: 9125

D4: 900

D5: 2750

Shipping Cost/Unit ($)

               D1     D2     D3     D4     D5

F1         12      10     4        8        7

F2         9        11    10       6       12

F3         5        13     11       12     9

Refer to the information above. The company wants to come up with an optimal shipping strategy to minimize its total shipping cost. Use Excel to formulate and solve this problem.

Business   Operations-Management   
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