Formulate this problem as a transportation problem by constructing the appropriate cost and requirements table.
Formulate this problem as a transportation problem by constructing the appropriate cost and requirements table.
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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Transcribed Image Text:A firm producing a single product has three plants and four customers. The three plants
will produce 3, 000, 5, 000 and 4, 000 units, respectively, during the next time period. The
firm has made a commitment to sell 4, 000 units to customer A, 3, 000 units to customer
B, and at least 1, 000 units to customer C. Both customers C and D also want to buy as
many of the remaining units as possible. The net profit associated with shipping a unit from
plant i for sale to customer j is given by the following table.
Customer
A
B
D
1
65
63
62
64
Plant
2
68
67
65
62
3
63
60
59
60
Management wishes to know how many units to sell to customers C and D and how many
units to ship from each of the plants to each of the customers to maximize profit.
a) Formulate this problem as a transportation problem by constructing the appropriate
cost and requirements table.
b) Use the Vogel's approximation method to obtain an initial basic feasible solution and
then use the transportation simplex method to obtain the optimal solution for the
problem as formulated in (a).
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