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A company can ship its product from any of its three factories, F1, F2, and F3, to any of its retail outlets, R1, R2, and R3. The capacity, demand, and shipping cost information is provided as follows:

Demand (units) Capacity (units)

R1: 300 F1:250

R2:500 F2:350

R3:200 F3:400

Shipping Cost /unit ($)

R1 R2 R3

F1 1 3 2

F2 3 4 2

F3 2 2 3

The company wants to come up with an optimal shipping strategy to minimize its total shipping cost. Use excel to formulate and solve this problem.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91576283

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