What is the cost of transportation

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Reference no: EM13259337

North Carolina Terrycloth Company produces and stores towels in warehouses located in four cities, as follows:

1.Warehouse Location Capacity (tons)

Charlotte 90
Raleigh 50
Lexington 80
Danville 60
Shortage 50

2.The warehouses supply towels to outlets in three cities with the following demands:

Outlet Requirement (tons)
Richmond 120
Winston Salem 100
Durham 110

3.Railroad shipping costs per ton are:

Warehouse Richmond Winston Salem Durham
Charlotte 7 10 5
Raleigh 12 9 4
Lexington 7 3 11

Danville 9 5 7

Shortage 1000 1000 1000

Because of railroad construction shipments are temporarily prohibited from Charlotte to Richmond.

1. Which city will be shorted its requirement?

a. Winston Salem

b. Charlotte

c. Danville

d. Richmond

2. Ignoring the total shortage cost what is the cost of transportation?

a. 5159

b. 50000

c. 1590

3. What did you use as the cost of shipment from Charlotte to Richmond?

a. 0

b. 7

c. 1000

d. greater than 1000

Reference no: EM13259337

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