The Riveria Transport Company (RTC) produces car accessories at two manufacturing plants: Dallas and Atlanta. They ship them to major distribution centers in Houston, San Jose, Jacksonville, and Memphis. The accounting, production, and marketing departments have provided the information in the table below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. RTC’s supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceed available capacity, and meet customer demand.
Houston San Jose Jacksonville Memphis
Dellas $13.00 $15.25 $10.00 $18.48
Atlanta $10.75 $14.00 $9.65 $18.50
Demand in Houston, San Jose, Jacksonville, and Memphis is 175, 325, 480, and 950 units, respectively.
The production capacity at Dallas is 1250 units and at Atlanta is 900 units.
What is the minimum cost incurred?