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Question: Each year, DC produces as many as 500 computers in Boston and 425 computers in Raleigh. Los Angeles customers must receive 400 computers, and 350 computers must be supplied to Austin customers. Producing a computer costs $500 in Boston and $700 in Raleigh. Computers are transported by plane and may be sent through Chicago. The costs of sending a computer between pairs of cities are shown in the table below. Formulate and solve a minimum-cost network flow model that can be used to minimize the total (production and distribution) cost of meeting DCs annual demand. How would you modify the part (a) formulation if at most 200 units could be shipped through Chicago?

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Operation Management, Management Studies

Category:- Operation Management
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