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To determine how many units to ship from each plant, the quarterly customer demand forecasts are aggregated at the distribution centers. And a transportation model is used to minimize the cost of shipping from the production plants to the distribution centers.
Shipping cost per unit from production plants to distribution centers
Plant Ft Worth Santa Fe Las Vegas
El Paso 3.20 2.20 4.20
San Bernardino --- 3.90 1.20
Quarterly Demand Forecast
Customer Zone Demand (meters)
San Antonio 4880
Kansas City 1210
Salt Lake City 4830
Los Angeles 8580
San Diego 4460
Shipping cost from the distribution centers to the customer zones ($)
San Kansas Salt Lake
Dallas Antonio Wichita City Denver City Phoenix LA SD
Ft Worth 0...
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