“Case Name: SHIPPING WOOD TO MARKETAlabama Atlantic is a lumber company that has three sources of wood and five mar¬kets to be supplied. The annual availability of wood at sources 1, 2. and 3 is 15, 20, and 15 million board feet, respectively. The amount that can be sold annually at mar¬kets 1, 2, 3, 4, and 5 is 11, 12, 9, 10, and 8 million board feet, respectively. .In the past the company has shipped the wood by train. However, because ship¬ping costs have been increasing, the alternative of using ships to make some of the de¬liveries is being investigated. This alternative would require the company to invest in some ships. Except for these investment costs, the shipping costs in thousands of dol¬lars per million board feet by rail and by water (when feasible) would be the follow¬ing for each route:Source
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