Question 1
Find the minimum cost solution for the transportation problem detailed in the table below.
Before your solution can be implemented, you discover that the combination Source 3 – Destination 1 is unavailable, due to political turmoil in the country where Source 3 is located. Solve the revised problem. How much is cost increased by this complication?
Question 2
A firm has established a distribution network for the supply of a raw material critical to its manufacturing. Currently there are two origins for this raw material, which must be shipped to three manufacturing plants. The current network has the following characteristics:
The firm has identified two potential sites for a third raw material source; these are identified as Candidate A and Candidate B. From A, the costs to ship would be $9 to Plant 1, $10 to Plant 2, and $12 to Plant 3. From B, these costs would be $11, $14, and $8. The new source, wherever it is located, will have a capacity of 500 units. Set up—but
do not solve— this problem as though you were going to solve it with transportation problem software.
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