Question

Global Foods, Inc. imports food products to the United States from Hamburg, Marseilles, and Liverpool. Ships from these ports deliver the products to Norfolk, New York, and Savannah, where they are stored in company warehouses before being shipped to distribution centers in Dallas, St. Louis, and Chicago. The shipping costs ($/1,000 lbs.) from the European ports to the U.S> cities and available supplies (1,000 lbs.) at the European ports are provided in the following table:

Shipping Costs ($/1,000 lbs.):

The transportation costs ($/1,000 lbs.) from each U.S. city of the three distribution centers and the demands (1,000 lbs.) at the distribution centers:

Port	U.S. Warehouses
	Norfolk	New York	Savannah	Supply (1,000 lbs.)
Hamburg	$420	$390	$610	55
Marseilles	$510	$590	$470	78
Liverpool	$450	$360	$480	37

		Distribution Center
		Dallas	St. Louis	Chicago
From Warehouse	Norfolk	$75	$63	$81
	New York	$125	$110	$95
	Savannah	$68	$82	$95
Demand (1,000 lbs.)		60	45	50

Formulate this problem in Excel and solve to determine the minimum shipping costs required to meet demands.

1. a) What is the total shipping cost meet the demands at the Distribution Centers?

2. b) Which European supplier did not ship out all its supply?

3. c) How many units should be shipped from Liverpool to New York?

4. d) How many units should be shipped from Savannah to St. Louis?

Answer 1