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At every harvest season, the wine estate has to manage the transportation of grapes from its three vineyards (denoted as v1, v2, and v3) to its two wineries (denoted as w1 and w2). It is estimated that this year the total output from the three vineyards is 300 crates, 250 crates, and 350 crates, and stock capacity of the two wineries is 300 crates and 250 crates. Handling cost of shipments from each vineyard to each winery is listed in the following table.

 

v1 ($/crate)

v2 ($/crate)

v3 ($/crate)

Demand (crate)

w1

10

7.5

4.5

300

w2

5.5

7

6

250

Supply (crate)

200

250

350

 

Formulate the problem as an IP problem to minimize handling cost, and then solve it in Solver.

Microeconomics, Economics

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