Question

Pete's Plastics manufactures plastic at plants in Miami, St. Louis and Cleveland. Pete needs to ship plastic to customers in Pittsburgh, Atlanta and Chicago. He wants to minimize the cost of shipping the plastic from his plants to his customers. The data for the problem is summarized in the following table.
Distance From Plants to Customers

Plant

Pittsburgh

Atlanta

Chicago

Supply

Miami

1200

700

1300

30

St. Louis

700

550

300

40

Cleveland

125

675

350

50

Demand

40

60

20

1. Formulate the LP for this problem.

2. Create a spreadsheet model for this problem and solve it using solver.

3. What is the optimal solution?

Answer 1

Answer:

1. Explained in attached diagram

2. Created in diagram attached

3. Optimal solution is 49000 Transportation Cost