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A mall management company runs two large malls in Atlanta. Mall i produces w(i) tons of trash per day for each i = 1,2 that must be sent to the one processing center in Atlanta and then to one of the Landfills (there are 2, indexed by j = 1,2) that are available. You should assume that the total combined daily capacity of the landfills is greater than the total combined daily trash produced at the two malls. Each mall must send trash through the processing center.

The cost to transport 1 ton of trash from Mall i to the processing center is p(i).

The processing center charges h dollars per ton of trash consolidated there.

The processing center has a capacity of K tons of trash per day that can be consolidated.

The cost to transport 1 ton of trash from the processing center to Landfill j is g(j).

Each landfill has a capacity of L(j)

Model the problem of deciding how the management company should dispose of the trash as a Minimum Cost Network Flow problem by drawing the network diagram.

Clearly label all of your nodes and arcs and include all associated data on your diagram.

Operation Management, Management Studies

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