The Move-It Company has two plants building forklift trucks that then are shipped to three distribution centers during a given month. The production costs are the same at the two plants, and the cost of shipping each truck is shown below for each combination of plant and distribution center:
Plant
|
Distribution Center
|
1
|
2
|
3
|
A
|
$800
|
$700
|
$400
|
B
|
$600
|
$800
|
$500
|
Each plant can produce a total of 30 forklift trucks per week. Each distribution center must receive exactly 20 trucks per week.
Management's objective is to determine how many forklift trucks should be shipped from each plant to minimize total shipping cost. Formulate and solve an LP model for this problem using Excel and find the total cost.