[Step-by-Step] A company supplies goods to three customers, who each require 30 units. The company has two warehouses. Warehouse 1 has 40 units available.
Question: A company supplies goods to three customers, who each require 30 units. The company has two warehouses. Warehouse 1 has 40 units available. and warehouse 2 has 30 units available. The costs of shipping 1 unit from warehouse to customer are shown in Table 7. There is a penalty for each unmet customer unit of demand: With customer 1, a penalty cost of $90 is incurred; with customer 2. $80; and with customer 3, $110. Formulate a balanced transportation problem to minimize the sum of shortage and shipping costs.
- State the decision variables clearly.
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Put the problem into its graphical representation.
C. Formulate the problem in an L.P. problem.
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Solution: The downloadable solution consists of 2 pages
Deliverable: Word Document