The Makonsel Company is a fully integrated company that both produces goods and sells them at its three retail outlets. After production, the goods are stored in the company’s two warehouses until needed by the retail outlets. Trucks are used to transport the goods from the two plants to the warehouses, and then from the warehouses to the three retail outlets (RO)
Using units of full truck loads, the following table shows each plant’s monthly output, its shipping cost per truck load to each warehouse, and the maximum amount that each plant can ship per month to each warehouse (for example, Plant 1 cannot ship more than 225 full truck loads to Warehouse 1).
To |
Unit Shipping Cost |
Shipping Capacity |
Plant Capacity |
||
From |
Warehouse 1 |
Warehouse 2 |
Warehouse 1 |
Warehouse 2 |
|
Plant 1 |
$425 |
$560 |
225 |
250 |
500 |
Plant 2 |
$510 |
$600 |
275 |
300 |
400 |
For each retail outlet (RO), the table below shows its monthly demand, and its shipping cost per truck load from the warehouse.
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Unit Shipping Cost |
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