Terminal (profit) Warehouse St. Louis Atlanta New York $1,800 1,000 1,400 Charlotte $2,100 $1,600 Memphis Louisville 700 900 800 2,200
The Roadnet Transport Company expanded its shipping capacity by purchasing 90 trailer
trucks from a competitor that went bankrupt. The company subsequently located 30 of the purchased
trucks at each of its shipping warehouses in Charlotte, Memphis, and Louisville. The
company makes shipments from each of these warehouses to terminals in St. Louis, Atlanta,
and New York. Each truck is capable of making one shipment per week. The terminal managers
have indicated their capacity of extra shipments. The manager at St. Louis can accommodate
40 additional trucks per week, the manager at Atlanta can accommodate 60 additional trucks,
and the manager at New York can accommodate 50 additional trucks. The company makes the
following profit per truckload shipment from each warehouse to each terminal. The profits differ
as a result of differences in products shipped, shipping costs, and transport rates: Determine how many trucks to assign to each route (i.e., warehouse to terminal) in order to maximize
profit.
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