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 Store 1 Store 2 Store 3 Store 4 Store 5 Store 6 Store 7 A 550 625 B 725 300 850 225 D E 900 425 400 650 750 450 with shipping costs per unit of Warehouse\Store | 1| 2 | 3 | 4 | 5 3 21 6. A 11 8. 6. 11 6. B C D 18 12 10 13 7 25 4| 22 5 30 15 | 11 12 14 14 7 10 6. 10 15 11 11 12
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 Store 1 Store 2 Store 3 Store 4 Store 5 Store 6 Store 7 A 550 625 B 725 300 850 225 D E 900 425 400 650 750 450 with shipping costs per unit of Warehouse\Store | 1| 2 | 3 | 4 | 5 3 21 6. A 11 8. 6. 11 6. B C D 18 12 10 13 7 25 4| 22 5 30 15 | 11 12 14 14 7 10 6. 10 15 11 11 12
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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Question
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5f799239-bf75-4c8c-a88f-30febcc0c4a0%2F6f5c335d-1430-4b42-9e55-5a173fed72ba%2Fxq54imf_processed.png&w=3840&q=75)
Transcribed Image Text: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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