North carolina terrycloth company produces and stores

Question

North Carolina Terrycloth Company produces and stores towels in warehouses located in four cities, as follows:

1.Warehouse Location Capacity (tons)

• Charlotte 90
• Raleigh 50
• Lexington 80
• Danville 60
• Shortage 50

2.The warehouses supply towels to outlets in three cities with the following demands:

• Outlet Requirement (tons)
• Richmond 120
• Winston Salem 100
• Durham 110

3.Railroad shipping costs per ton are:

• Warehouse Richmond Winston Salem Durham
• Charlotte 7 10 5
• Raleigh 12 9 4
• Lexington 7 3 11

• Danville 9 5 7

Shortage 1000 1000 1000

Because of railroad construction shipments are temporarily prohibited from Charlotte to Richmond.

1. Which city will be shorted its requirement?

a. Winston Salem

b. Charlotte

c. Danville

d. Richmond

2. Ignoring the total shortage cost what is the cost of transportation?

a. 5159

b. 50000

c. 1590

3. What did you use as the cost of shipment from Charlotte to Richmond?

a. 0

b. 7

c. 1000

d. greater than 1000