Question

In: Operations Management

Consider a transportation problem, shipping a product from two sources to two customers. The following table...

Consider a transportation problem, shipping a product from two sources to two customers. The following table shows the data. What is the objective function value, which is the minimum shipping cost (unit in $), while satisfying the demand for each customer and supply for each source? Be careful with data inputs as you run the software program.

Customer 1

Customer 2

Supply

Source 1

$21/unit

35

17

Source 2

22

17

33

Demand

20

30

Solutions

Expert Solution

The Initial Cost and Volume Matrix is:

Solver Parameters:

Constraints are no source can supply more than capacity and each customer should receive a minimum of the demand

Optimal Solution:

Minimum Cost is: $933

Source 1 to Customer 1 = 17 and Customer 2 = 0

Source 2 to customer 1 = 3 and customer 2 = 30

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