Four suppliers have submitted sealed bids that quote the price per case of harinets delivered to four regional stores of the army. The bids are summarized in the following table. The regional store’s requirements as well as the supplying capacities of the suppliers are shown. Supplier 4 has quoted for only region 1. Because of previous contractual obligations, region 3 will have to get a minimum of 2,000 cases from supplier 2. Supplier Region R1 R2 R3 R4 Max. supply (cases) 1S 30 25 40 35 800 2S 35 32 38 40 1,000 3S 28 30 35 38 1,500 4S 25 - - - 600 Required (cases) 1,000 800 1,200 750 i. Formulate this problem as a transportation model including all the constraints. ii. Find the initial basic solution using V.A.M. iii. Use MODI method to establish whether the above solution obtained is optimal or not. Four suppliers have submitted sealed bids that quote the price per case of harinets deliveredto four regional stores of the army. The bids are summarized in the following table. Theregional store's requirements as well as the supplying capacities of the suppliers are shown.Supplier 4 has quoted for only region 1. Because of previous contractual obligations, region3 will have to get a minimum of 2,000 cases from supplier 2.RegionR₁R₂R₁ R4Max. supply (cases)3025S₁4035800Supplier353238S₂401,000S₂283035381,500S₁25600Required (cases)1,000800 1,200 750i.Formulate this problem as a transportation model including all the constraints.Find the initial basic solution using V.A.M.ii.iii.Use MODI method to establish whether the above solution obtained is optimal ornot.

i. Minimize cost = 30 S1R1 + 25 S1R2 + 40 S1R3 + 35 S1R4 + 35 S2R1 + 32 S2R2 + 38 S2R3 + 40 S2R4…

Answered: Four suppliers have submitted sealed…

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

Four suppliers have submitted sealed bids that quote the price per case of harinets delivered
to four regional stores of the army. The bids are summarized in the following table. The
regional store’s requirements as well as the supplying capacities of the suppliers are shown.
Supplier 4 has quoted for only region 1. Because of previous contractual obligations, region
3 will have to get a minimum of 2,000 cases from supplier 2.
Supplier
Region
R1 R2 R3 R4 Max. supply (cases)
1
S 30 25 40 35 800
2
S 35 32 38 40 1,000
3
S 28 30 35 38 1,500
4
S 25 - - - 600
Required (cases) 1,000 800 1,200 750
i. Formulate this problem as a transportation model including all the constraints.
ii. Find the initial basic solution using V.A.M.
iii. Use MODI method to establish whether the above solution obtained is optimal or
not.