An air conditioning manufacturer produces room air conditioners at plants in Houston, Phoenix, and Memphis. These are sent to regional distributors in Dallas, Atlanta, and Denver. The shipping costs vary, and the company would like to find the least-cost way to meet the demands at each of the distribution centers. Dallas needs to receive 800 air conditioners per month, Atlanta needs 600, and Denver needs 200. Houston has 850 air conditioners available each month, Phoenix has 650, and Memphis has 300.
The shipping cost per unit from Houston to Dallas is $8, to Atlanta is $12, and to Denver is $10. The cost per unit from Phoenix to Dallas is $10, to Atlanta is $14, and to Denver is $9. The cost per unit from Memphis to Dallas is $11, to Atlanta is $8, and to Denver is $12. How many units should be shipped from each plant to each regional distribution center? What is the total cost for this?
A complete, neat and Step-by-step solution for shipping unit numbers and total costs is provided in the attached Excel file.