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Determine plan that will minimize total distribution cost

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Tri-County Utilities, Inc., supplies natural gas to customers in a three-county area. The company purchases natural gas from two companies: Southern Gas and Northwest Gas. Demand forecasts for the coming winter season are Hamilton County, 400 units; Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the following quantities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units. Distribution costs for the counties vary, depending upon the location of the suppliers. The distribution costs per unit (in thousands of dollars) are as follows:

From To

Hamilton Butler Clermont
Southern Gas 10 20 15
Northwest Gas 12 15 18

-Develop a network representation of this problem.

-Develop a linear programming model that can be used to determine the plan that will minimize total distribution costs.

-Describe the distribution plan and show the total distribution cost. (First determine initial transportation cost then use LCM).

Reference no: EM132712897

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