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Pete's Plastics manufactures plastic at plants in Miami, St. Louis and Cleveland. Pete needs to ship plastic to customers in Pittsburgh, Atlanta and Chicago. He wants to minimize the cost of shipping the plastic from his plants to his customers. The data for the problem is summarized in the following table. Formulate the LP for this problem.
Maximize Profits
The goal of increasing the difference between revenue and expenses to the highest possible level.
Minimize Losses
a strategy or approach aimed at reducing the amount of financial or production losses to the lowest possible level.
Losses
Negative financial outcomes resulting from the cost of operations exceeding revenue or from other financial transactions.
Shut Down
A short-run decision by a firm to cease production due to unfavorable market conditions, not covering variable costs.
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