3. A company headquartered in the Midwest is in the business of shipping corn from the Midwest to companies on the East Coast that manufacture products based on corn (e. g., corn oil and corn syrup). The company has bought 3 rail cars full of corn at Muncie, Indiana, six rail cars at Brazil, Indiana, and 5 rail cars at Xenia, Indiana. It has sold 2 railcars of corn at Macon, Georgia, 4 at Greenwood, South Carolina, 3 at Concord, South Carolina, and 3 at Chatham, North Carolina. All shipments must pass through either Cincinnati, Ohio, or Louisville, Kentucky. Below are the shipping costs IN CENTS PER BUSHEL OF CORN from Ohio to Cincinnati or Louisville, and then from Cincinnati or Louisville to their final destinations in the Southeast There are about 3500 bushels per rail car load.

From/To Luissvilla Cincinnati
Muncie 8 6
Brazil 3 9
Xenia 9 3

From/To Macoon Greenwood Concord Chatham
Luissvilla 44 34 34 32
Cincinnati 57 35 28 24
If the company can keep its freight costs low, its profitability will improve. a. Is this a transportation, transshipment, or minimum distance problem? How did you decide that? (2 pts.)