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Question: Consider a transportation problem with two origins (warehouses) and three destinations (customers). The supplies at the warehouses are 60 and 80 units, respectively, while the demand is exactly 30, 50, and 40, respectively. The problem has been formulated as follows:

2248_X 2.png

The printout is shown in Tables 2.37 and 2.38.

(a) What is the shipment plan and what are the associated costs?

(b) Which of the warehouses are fully used and which have still some units of the product in them (and how many)?

465_X 3.png

477_X 4.png


(c) What if the per-unit-cost of a shipment from origin 2 to destination 3 were to increase by $2, would that change the optimal solution? What if the cost were to decrease by $2?

(d) What would happen if the number of units available at the first warehouse were to be reduced by one unit? (Include cost considerations).

(e) What if we were offered extra units delivered to warehouse 2 at a rate of $2 per unit?

Management Theories, Management Studies

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