Statistics Solutions

(Step-by-Step) Finnish Furniture manufactures tables in facilities located in three cities--Reno, Denver, and Pittsburgh. The tables are then shipped to three

Question: Finnish Furniture manufactures tables in facilities located in three cities--Reno, Denver, and Pittsburgh. The tables are then shipped to three retail stores located in Phoenix, Cleveland, and Chicago. Management wishes to develop a distribution schedule that will meet the demands at the lowest possible cost. The shipping cost per unit from each of the sources to each of the destinations is shown in the following table:

To
From Phoenix Cleveland Chicago
Reno 10 16 19
Denver 12 14 13
Pittsburgh 18 8 12

The available supplies are 130 units from Reno, 200 from Denver, and 160 from Pittsburgh. Phoenix has a demand of 140 units, Cleveland has a demand of 160 units, and Chicago has a demand of 200 units.

  1. How many units should be shipped from each manufacturing facility to each of the retail stores if cost is to be minimized?
  2. What is the total cost?

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Solution: The downloadable solution consists of 2 pages
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