Green Valley Mills produces carpet at plants in St. Louis and Richmond. The carpet is then shipped to two outlets, located in Chicago and Atlanta. The cost per ton of shipping carpet from each of the two plants to the two warehouses is as follows:
From Chicago | Atlanta
St. Louis $40 | $65
Richmond 70 | 30
The plant at St. Louis can supply 250 tons of carpet per week; the plant at Richmond can supply 400 tons per week. The Chicago outlet has a demand of 300 tons per week, and the outlet at Atlanta demands 350 tons per week. The company wants to know the number of tons of carpet to ship from each plant to each outlet in order to minimize the total shipping cost. Solve this transportation problem.
The solution attaches an Excel file contains solution of a transportation problem using solver tool.