Solving this problem using the transportation simplex method (i.e. Chapter 19) to min-imize the transportation costs can take numerous iterations. Clearly show with expla-nations between steps (this is not a small problem) the first 5 iterations of this method. Clearly state your delivery answer between iterations and the final costs. What do you observe about these costs. 1. A local shipping company D.G.H.M. Inc. has recently acquired the a large supply of PS5's. Asa result they have set up in 5 warehouses in the lower parts of Ontario. From these warehousesthey will ship the products to the 7 stores they have throughout the area. The tables belowindicate the supply, demand and shipping costs per product from each warehouse to each store.Warehouse | SupplyStoreDemandA.550Store 1625В725Store 2300C850Store 3225900Store 4425E400Store 5650Store 6750Store 7450with shipping costs per unit ofWarehouse\Store | 1| 236743 | 217 18A11611В1210137 2515111214144 | 229710610E530151111812

1 2 3 4 5 6 7 Supply A 3 21 11 8 6 11 9 550 B 7 18 12 9 10 7 13 725 C 7 25 15 11 12 14…

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Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Solving this problem using the transportation simplex method (i.e. Chapter 19) to min-imize the transportation costs can take numerous iterations. Clearly show with expla-nations between steps (this is not a small problem) the first 5 iterations of this method. Clearly state your delivery answer between iterations and the final costs. What do you observe about these costs.

1. A local shipping company D.G.H.M. Inc. has recently acquired the a large supply of PS5's. As
a result they have set up in 5 warehouses in the lower parts of Ontario. From these warehouses
they will ship the products to the 7 stores they have throughout the area. The tables below
indicate the supply, demand and shipping costs per product from each warehouse to each store.
Warehouse | Supply
Store
Demand
A.
550
Store 1
625
В
725
Store 2
300
C
850
Store 3
225
900
Store 4
425
E
400
Store 5
650
Store 6
750
Store 7
450
with shipping costs per unit of
Warehouse\Store | 1| 2
3
6
7
4
3 | 21
7 18
A
11
6
11
В
12
10
13
7 25
15
11
12
14
14
4 | 22
9
7
10
6
10
E
5
30
15
11
11
8
12

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