Question: The Move-it Company has two different plants producing forklift trucks are shipped to the three distribution centers. The production costs are the same at the two plants and the costs of shipping for each truck is shown for each combination of plant and distribution center:

A total of 60 forklift trucks are produced and shipped per week. Each plant can produce and ship any amount up to a maximum of 50 trucks per week, so there is considerable flexibility on how to divide the total production between the two plants so as to reduce shipping costs. However, each distribution center has to receive exactly 20 trucks per week. Management’s objective is to determine how many forklift trucks should be produced at each plant and then what the overall shipping pattern should be to minimize the total shipping costs.

1. Formulate this problem as a transportation problem.

(c) Use Excel Solver to obtain an optimal solution.

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