Reference no: EM132070695

Lillian computers have its production facilities in Chicago, San Diego and Denver. Production capabilities for these production facilities over a month planning period are listed in Table 2. Table 2 Plant Production capacity Chicago 500 San Diego 700 Denver 300 Lillian computer distributes its computers to the retailers through four distribution centers. Table 3 presents the demand forecasts for each of the distribution centers. Table 3 Distribution center Demand Seattle 400 Houston 300 Baltimore 200 New York 600 Lillian management would like to determine how much of its production should be shipped from each plant to each distribution center. The cost for each unit via each route is given in Table 4. Table 4 Origin Destination Seattle Houston Baltimore New York Chicago $ 200 $ 300 $ 250 $ 300 San Diego $ 100 $ 400 $ 500 $ 600 Denver $ 250 $ 275 $ 350 $ 450