Pharma Inc. manufactures a pharmaceutical product at two factories, one in Memphis and one
in Denver. The Memphis factory can produce as many as 150 products, and the Denver factory
can produce as many as 200 products per day. The products are shipped by air to customers in
LA and Boston. The customers in each city require 130 products per day. Because of the
deregulation of airfares, Pharma Inc. believes that it may be cheaper first fly some products to
NY or Chicago and then fly them to their final destinations. The cost of flying a product are
shown next. Pharma wants to minimize the total cost of shipping the required products to
customers
To ?
Memphis
Denver
N.Y.
Chicago
L.A.
Boston
From?
Memphis
$0
—-
$8
$0
$13
$25
$28
Denver
—-
$15
$12
$26
$25
N.Y.
—-
—-
$0
$6
$16
$17
Chicago
—-
—-
$6
$0
$14
$16
