Widgetco
Widgetco manufactures widgets at two factories, one in Memphis and one
inf Denver. The Memphis factory can produce up to 150 widgets per
day, and the Denver factory can produce up to 200 widgets per day.
Widgets are shipped by air to customers in Los Angeles and Boston.
The customers in each city require 130 widgets per day. Because of
the deregulation of air fares., Widgetco believes that it may be
cheaper to first fly some widgets to New York or Chicago and then fly
them to their final destinations. The costs of flying a widget are
shown below. Widgetco wants to minimize the total cost of shipping
the required widgets to its customers.
| From
| Memphis
| Denver
| NY
| Chicago
| LA
| Boston
| | Memphis
| $0 | - | $8 | $13 | $25 | $28
|
| Denver
| - | $0 | $15 | $12 | $26 | $25
|
| NY
| - | - | $0 | $6 | $16 | $17
|
| Chicago
| - | - | $6 | $0 | $14 | $16
|
| LA
| - | - | - | - | $0 | -
|
| Boston
| - | - | - | - | - | $0
|