Assignment:
Resolve Pear’s transshipment problem assuming that an additional transshipment point is located at Oklahoma City. Assume that the unit costs of shipping from the three plants to Oklahoma City are Sunnyvale, $170; Dublin, $1,200; and Bangkok, $1,600; and the respective costs of shipping from Oklahoma City to the demand nodes are Amarillo, $35; Teaneck, $245; and Sioux Falls, $145. Assume that Oklahoma City is only a transshipment point and has no demand of its own. Find the new shipping pattern with the addition of the new transshipment point and the savings, if any, of introducing this additional node.
Provide complete and step by step solution for the question and show calculations and use formulas.