In: Statistics and Probability
World Foods, Inc., imports food products such as meats, cheese, and pastries to the United States from warehouses at ports in hamburg, Marseilles, and Liverpool. Ships from these ports deliver the products to Norfolk, New York, and Savannah, where they are stored in company warehouses before being shipped to distribution centers in Dallas, St. Louis, and Chicago. The products are then distributed to specialty food stores and sold through catalogs. The shipping costs ($/1,000 lb.) from the European ports to the U.S. cities and the available supplies (1,000 lb.) at the European ports are provided in the following table:
U.S. City | ||||
---|---|---|---|---|
European Port | 4. Norfolk | 5. New York | 6. Savannah | Supply |
1. Hamburg | $420 | $390 | $610 | 55 |
2. Marseilles | 510 | 590 | 470 | 78 |
3. Liverpool | 450 | 360 | 480 | 37 |
The transportation costs ($/1,000 lb.) from each U.S. City of the three distribution centers and the demands (1,000 lb.) at the distribution centers are as follows:
Distribution Center | |||
---|---|---|---|
Warehouse | 7. Dallas | 8. St. Louis | 9. Chicago |
4. Norfolk | $75 | $63 | $81 |
5. New York | 125 | 110 | 95 |
6. Savannah | 68 | 82 | 95 |
Demand | 60 | 45 | 50 |
Determine the optimal shipments between the European ports and the warehouses and the distribution centers to minimize total transportation costs.