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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 demand at each of the distribution centers.

Dallas needs to receive 800 air conditioners per month, Atlanta needs to receive 600, 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 shipping cost per unit from Phoenix: to Dallas is $10, to Atlanta is $14, and to Denver is $9.

The shipping cost per unit from Memphis: to Dallas is $11, to Atlanta is $8, and to Denver is $12.

Use the North-west method to approximate the total cost of a solution?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91638925

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