(b) Determine the optimum shipping schedule.

(Hint: Add four new destinations corresponding to the new combinations [MI, M2], [M3, M4], [Ml, M2], and [M2, M4]. The demands at the new destinations are determined from the given percentages.)

TABLE 5.10 Capacities and Demands for Problem 13 Model M1 M2 M3 M4 Totals Plant Los Angeles 700 300 1000 Detroit 500 600 400 1500 New Orleans 800 400 1200 Distribution center Denver 700 500 500 600 2300 Miami 600 500 200 100 1400 TABLE 5.11 Interchangeable Models in Problem 13 Distribution center Denver Miami Percentage of demand 10 20 10 5

Interchangeable models M1,M2 M3,M4 M1,M2 M2,M4 1. In Example 5.2-1, suppose that the holding cost per unit is period-dependent and is given by 40, 30, and 70 cents for periods 1,2, and 3, respectively. The penalty and production costs I'emain as given in the example. Determine the optimum solution and interpret the results