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"Milky Milk" has three (3) warehouses and five (5) retail stores. The company needs to transport its milk tanks from the warehouses to the stores. The supply in each warehouse, the demand of each store and the transportation cost per gallon from each warehouse to each store are all given in the table below:
Store
Supply
5
4
3
2
1
170
$3.30
$2.00
$1.60
$4.10
$2.10
Warehouse 1
150
$3.60
$3.10
$5.50
$4.20
$0.90
Warehouse 2
130
$1.80
$4.00
$0.80
$5.10
$3.80
Warehouse 3
40
180
65
70
35
Demand
For example, in warehouse 2 the company has 150 gallons of milk; the demand in store 5 is for 40 gallons; the cost of transporting one (1) gallon of milk from warehouse 2 to store 5 is $3.60.
The objective is to satisfy the demand in each store while minimizing transportation costs.
You may assume that the company can transport parts of a gallon; for example, the company may transport 3.3 gallons of milk from warehouse X to store Y.
Don't forget to submit your Solver spreadsheet after you are done with the exam.
What is the total cost of transporting all the milk?
How much milk should be transported from each warehouse to each store?
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