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Question
NARRBEGIN: SA_82_83Each year, a computer company produces up to 600 computers in New York and up to 500 computers in Memphis. Los Angeles customers must receive 600 computers, and 500 computers must be supplies to Oklahoma City customers. Producing a computer costs $850 in New York and $950 in Memphis. Computers are transported by plane and can be sent through Chicago. The costs of shipping a computer between cities are shown below.
| To | |||||
| From | Chicago | Oklahoma City | L.A. | ||
| New York | $95 | $245 | $295 | ||
| Memphis | $115 | $155 | $195 | ||
| Chicago | NA | $60 | $65 | ||
(A) Determine how to minimize the total (production plus distribution) costs of meeting the company's annual demand.
(B) How would you modify the model in (A) if at most 300 units can be shipped through Chicago?
Answer
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