Destination Source Сарacity Worchester Rochester Dorchester $4.37 $4.25 $4.89 Battle Creek 12,000 12,000 $4.00 $5.00 $5.27 Cherry Creek 10,000 6,000 4,000 $4.13 $4.50 $3.75 Dee Creek 18,000 6,000 12,000 Demand 6,000 22,000 12,000 40,000
The Arid Company makes canoe paddles to serve distribution centers in Worchester, Rochester, and Dorchester from existing plants in Battle Creek and Cherry Creek. Arid is considering locating a plant near the headwaters of Dee Creek. Annual capacity for each plant is shown in the right-hand column, while annual demand is shown in the bottom row of the tableau in Figure. Transportation costs per paddle are shown in the tableau in the small boxes. For example, the cost to ship one paddle from Battle Creek to Worchester is $4.37. The optimal allocations using the transportation method for location problems are also shown in Figure. For example, Battle Creek ships 12,000 units to Rochester. What are the estimated transportation costs associated with this allocation pattern?
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