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Forbelt Corporation has a 1-year contract to supply motors for all refrigerators produced by the...

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Finance

Forbelt Corporation has a 1-year contract to supply motors for all refrigerators produced by the Ice Age Corporation. Ice Age manufactures the refrigerators at four locations around the country: Boston, Dallas, Los Angeles and St. Paul. Forbelt has three plants that are capable of producing the motors. The plants and their capacities along with the destinations and demands are shown in the chart below. The shipping costs vary between different pairs of plants and destinations. The cost of shipping one unit from each plant to each destination is given below.

Find an initial feasible solution to this problem using the North-South Rule solution technique. Show your solution in the table above. What are the pros and cons of this solution method? What is the total cost?

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