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Question - Izzy Plastic Processing Company has three processing plants in three locations. It received orders from three customers. Plant 1 has 700 cartons, Plant 2 has 500 cartons, and Plant 3 has 300. cartons. Customer A needs 400 cartons, customer B needs 500 cartons, and customer C needs 600 cartons. The costs of transportation per carton of the product from the plants to the customers are presented as follows:
Customer A
Customer B
Customer C
Plant 1
5.00
2.00
5.50
Plant 2
4.00
2.50
3.00
Plant 3
4.50
3.50
Required - Determine the distribution of the products to the three customers where the transportation costs are minimized using the stepping-stone and modified distribution (MODI) methods following the northwest corner rule for the initial solution.
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