Question: Kelly Foods has two plants and ships canned vegetables to customers in four cities. The cost of shipping one case from a plant to a customer is given in the following table.
Plant/Customer        Chicago             Cincinnati            Indianapolis           Pittsburgh
Akron                          $1.70                  $2.30                      $2.50                       $2.15
Evansville                   $1.95                  $2.35                      $1.65                       $2.95
The plant in Akron has a capacity of 2,800 cases per week, and the Evansville plant can produce 4,500 cases per week. Customer orders for the next week are
- Chicago: 2,000 cases
- Cincinnati: 1,200 cases
- Indianapolis: 2,500 cases
- Pittsburgh: 1,400 cases
Find the minimum-cost shipping plan. Interpret the Sensitivity report and write a short memo to the VP of Operations explaining your results.