Q. Steco, a steel wholesaler, leases regional warehouses for its operation on a monthly basis. Steco presently has a list of 3 potential warehouses which it can lease. The cost per month to lease every warehouse is shown in table 1 below. There are four sales districts in Stecos operation. The monthly demand (in truck load requirements) is specify in table 1 as well as the unit cost of sending a truck from a warehouse to a given district. Steco wants to know which warehouses to lease also describe how many trucks to send from every warehouse to every district which will minimize overall cost. Keep in mind which every warehouse does not have to be used. Formulate an LP program also solve this problem.

Table 1

Cost per truck from warehouse to Sales District Sales Districts Monthly Capacity (number of truck loads) Monthly Leasing Cost

WAREHOUSE 1 2 3 4

A $170 $40 $70 $160 200 $7,750

B $150 $195 $100 $10 250 $4,000

C $100 $240 $140 $60 300 $5,500

Monthly Demand (truck loads) 100 90 110 60

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