supply chain manager faces the problem of determining how much to ship between each plant and distribution center minimize the total transportation cost, not exceed available capacity, and meet customer demand. Cincinnati Indianapolis Pittsburgh Ackron $2.30 Evansville $2.35 Chicago $1.70 Demand 500 What is the minimum total transportation cost? $2.50 $1.65 $1.95 1000 $2.15 $2.95 $2.99 1000 Capacity 1200 800 500

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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General Appliance Corporation (GAC) produces refrigerators at three plants: Akron, Evansville, and Chicago. They ship
them to distribution centers in Cincinnati, Indianapolis, and Pittsburgh. The accounting, production, and marketing
departments have provided the information in the table given below, which shows the unit cost of shipping between any
plant and distribution center, plant capacities over the next planning period, and distribution center demands. GAC's
supply chain manager faces the problem of determining how much to ship between each plant and distribution center to
minimize the total transportation cost, not exceed available capacity, and meet customer demand.
Cincinnati Indianapolis Pittsburgh
Capacity
Ackron $2.30
Evansville $2.35
Chicago $1.70
Demand 500
What is the minimum total transportation cost?
$2.50
$1.65
$1.95
1000
$2.15
$2.95
$2.99
1000
1200
800
500
Transcribed Image Text:General Appliance Corporation (GAC) produces refrigerators at three plants: Akron, Evansville, and Chicago. They ship them to distribution centers in Cincinnati, Indianapolis, and Pittsburgh. The accounting, production, and marketing departments have provided the information in the table given below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. GAC's supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceed available capacity, and meet customer demand. Cincinnati Indianapolis Pittsburgh Capacity Ackron $2.30 Evansville $2.35 Chicago $1.70 Demand 500 What is the minimum total transportation cost? $2.50 $1.65 $1.95 1000 $2.15 $2.95 $2.99 1000 1200 800 500
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