Transshipment Widgetco manufactures widgets at two factories, one in Memphis and one in Denver. The Memphis factory can produce as many as 150 widgets per day, and the Denver factory can produce as...

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Transshipment


Widgetco manufactures widgets at two factories, one in Memphis and one in Denver. The Memphis factory can produce as many as 150 widgets per day, and the Denver factory can produce as many as 200 widgets per day. Widgets are shipped by air to customers in Los Angeles and Boston. The customers in each city require 130 widgets per day. Because of the deregulation of airfares, Widgetco believes that it may be cheaper to first fly some widgets to New York or Chicago and then fly them to their final destinations. The costs of flying a widget are shown in Table.













































































From









To ($)







Memphis



Denver



N.Y.



Chicago



L.A.



Boston



Memphis



0





8





13



28



Denver





0



15





12



25



N.Y.







0





6



17



Chicago







6





0



16



L.A.















Boston













0



 Widgetco wants to minimize the total cost of shipping the required widgets to its customers.





Answered Same DayDec 24, 2021

Answer To: Transshipment Widgetco manufactures widgets at two factories, one in Memphis and one in Denver. The...

David answered on Dec 24 2021
123 Votes
1

Widgetsco manufactures widgets at two factories, one in Memphis and one in Denver. The
Memp
his factory can produce as many as 150 widgets per day, and the Denver factory can
produce as many as 200 widgets per day. Widgets are shipped by air to customers in Los
Angeles and Boston. The customers in each city require 130 widgets per day. Because of the
deregulation of airfares, Widgetco believes that it may be cheaper to first fly some widgets to
New York or Chicago and then fly them to their final destinations. The costs of flying a widget is
shown below. Widgetco wants to minimize the total cost of shipping the required widgets to its
customers.
To
From Memphis Denver New York Chicago LA Boston
Memphis 0 - 8 13 25 28
Denver - 0 15 12 26 25
New York - - 0 6 16 17
Chicago - - 6 0 14 16
LA - - - - 0 -
Boston - - - - - 0
Memphis, Denver: Supply points
New York, Chicago:...
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