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Market demand

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A company has two factories, one each at Bristol and Leeds. The factories produce paints which are sold to five wholesalers. The wholesalers are either supplied directly from the factories or through one of the company warehouses, the transportation costs being paid by the company. The company has three warehouses, one each in London, Birmingham and Glasglow. Table 1 (see attached) shows the transportation costs per ton for deliveries from the suppliers to the warehouses or wholesalers and also from the warehouses to the wholesalers, omitting entries when delivery from a certain supplier or warehouse is impossible for some destination.

The two factories at Bristol and Leeds can produce up to 50,000 and 60,000 tons per week respectively. No more than 25,000, 20,000 and 16,000 tons can be moved each week through the warehouse in London, Birmingham and Glasgow respectively. Wholesalers 1, 2, 3, 4 and 5 require at least 20,000, 25,000, 19,000 and 21,000 tons per week respectively.

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Market demand is forecasted to increase in the next several months. It is expected to progressively raise demand for the company's ...

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