Each year, Data Corporal produces up to 5000 computers in Boston and up to 3500 computers in Charlotte. There are customers in Los Angeles, New York, and Seattle who must receive 2300, 3700, and 1300 computers, respectively. Producing a computer costs $250 in Boston and $275 in Charlotte. Computers are transported by plane and can be sent through Chicago. The costs of sending a computer between pairs of cities are shown in the file P05_58.xlsx.
a. Determine how to minimize the total (production plus shipping) cost of meeting Data Corporal’s annual demand. Why doesn’t it make sense to ship any computers through Chicago?
b. Modify the model so that no more than 1250 computers can be shipped between any two cities, and find the optimal solution to this modified model. Why are computers now shipped through Chicago?
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