A company has three plants supplying the same product to the five distribution centers. Due to… 1 answer below »

A company has three plants supplying the same product to the five distribution centers. Due to peculiarities inherent in the set of cost of manufacturing, the cost / unit will vary from plant to plant. Which is given below. There are restrictions in the monthly capacity of each plant, each distribution center has a specific sales requirement, capacity requirement and the cost of transportation is given below: Factories W1 W2 W3 W4 W5 Supply F1 5 3 3 6 4 200 F2 4 5 6 3 7 125 F3 2 3 5 2 3 175 Demand 60 80 85 105 70 400 500 The cost of manufacturing a product at the different plants is Fixed cost is Rs. 5 7×10 , 5 4×10 and 5 5×10 whereas the variable cost per unit is Rs.13/-, 15/- and 14/- respectively. Determine the quantity to be dispatched from each plant to different distribution centers, satisfying the requirements at minimum cost.

 

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