2.NW Lumber is a logging and lumber processor located in northern California, Oregon, and Washington. NW is currently logging in an area near Garberville, California, as well as Grant’s Pass, Oregon, and Willard, Washington. It owns and operates processing plants in Eureka, California, Crescent City, California, and Coos Bay, Oregon. For the upcoming month, processing capacities are 2000 tons at Eureka, 1400 tons at Crescent City, and 1500 tons at Coos Bay. It is forecasted that NW will harvest 1600 tons of timber during the month at each of the three logging locations. All needs to be shipped to one of the processing plant.The following table gives the transportation costs per ton. How should the 4800 tons of timber be shipping to the processing plants in the coming month in order to minimize total transportation costs for NW Lumber?Transportation Cost per TonToEurekaCrescent CityCoos BayFromGarberville$175$225$250Grant’s Pass$150$100$100Willard$300$275$200Requirement: You only need to formulate the problem (three steps). But do not need to solve it.
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