Problem -
Widgetco Widgetco manufactures widgets at two factories, one in Memphis and one in Denver.
The Memphis factory can produce as 150 widgets, and the Denver factory can produce as many as 200 widgets per day. Widgets are shipped by air to customers in LA and Boston.
The customers in each city require 130 widgets per day. Because of the deregulation of airfares, Widgetco believes that it may be cheaper first fly some widgets to NY or Chicago and then fly them to their final destinations.
The cost of flying a widget are shown next. Widgetco wants to minimize the total cost of shipping the required widgets to customers.
NY Chicago LA Boston Supply Memphis $18 $23 $30 $38 150 Denver $25 $22 $36 $35 200 NY $0 $16 $26 $27 350 Chicago $16 $0 $24 $26 350 Demand 350 350 130 130 Supply: Memphis and Denver Demand: LA and Boston Distribution: NY and Chicago
Formulate and solve the LP to find the least-cost means of shipping supplies.