Reference no: EM131440205
Question: Kelly Foods has two plants and ships canned vegetables to customers in four cities. The cost of shipping one case from a plant to a customer is given in the following table.
Plant/Customer Chicago Cincinnati Indianapolis Pittsburgh
Akron $1.70 $2.30 $2.50 $2.15
Evansville $1.95 $2.35 $1.65 $2.95
The plant in Akron has a capacity of 2,800 cases per week, and the Evansville plant can produce 4,500 cases per week. Customer orders for the next week are
- Chicago: 2,000 cases
- Cincinnati: 1,200 cases
- Indianapolis: 2,500 cases
- Pittsburgh: 1,400 cases
Find the minimum-cost shipping plan. Interpret the Sensitivity report and write a short memo to the VP of Operations explaining your results.
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