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Joe Bagov makes 500 donuts in Wayne and has customers in Tilden who want 100 donuts, in Norfolk who want 200 donuts and in South Sioux City who want 200 donuts. Joe has distributors in Wisner and Laurel who will get the donuts and take them to the final destinations. Joe has to decide how much each distributor will take to each location. The locations have the following numbers to identify the locations: Wayne 1, Laurel 2, Wisner 3, Tilden 4, Norfolk 5, and South Sioux City 6. It costs 10 cents per donut to get donuts from Wayne to the distributors in both Laurel and Wisner. The costs per donut to go from Laurel to Tilden, Norfolk and South Sioux City are 15, 10, and 15 cents, respectively. Similarly, from Wisner to these locations, respectively, are 13, 9 and 16 cents.

Formulate the linear programming problem to minimize cost of getting donuts from Wayne to Tilden, Norfolk and South Sioux City in this transshipment problem. Attach the Excel when you submit answers

How many donuts are shipped on each route and what is the minimum cost of the shipping?

Would the shipping amounts change if the cost of shipping from Wayne to Laurel changed to 6 cents? Yes or no? Why?

What does the reduced cost of 0.01 on the variable x36 mean?

What would happen to the total cost of shipping if Tilden only wanted 99 dounts?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92554686

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