Finnish Furniture manufactures tables in facilities located in 3 cities. Reno - Denver & pittsburg. The tables are shipped to 3 retail stores in Phoenix-Cleveland & Chicago. Management wants to develop a distribution schedule that will meet the demands at the lowest possible cost. The shipping cost per unit from each source to each destination is in the table below: From To Phoenix To Cleveland To Chicago Reno 10 16 19 Denver 12 14 13 Pittsburgh 18 12 12 The available supplies are 120 units from Reno, 200 from Denver and 160 from Pittsburgh. Phoenix has demanded 140 units, Cleveland demanded 160 units and Chicago has demanded 180 units. How many units should be shipped from each manufacturing facility to each retail stores if cost is to minimized? What is the total cost? Use the VAM, - Vogel's Approx Method - one iteration of the MODI method and calculate the total cost.
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