1 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.