Then the total capacity is equal to the total demand. Reoptimize the model. You should find that

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Then the total capacity is equal to the total demand. Reoptimize the model. You should find that the optimal solution uses all capacity and exactly meets all demands with a total cost of $176,050. Now increase the capacity of plant 1 and the demand at region 2 by 1 automobile each, and optimize again.

What happens to the optimal total cost? How can you explain this “more for less” paradox?

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Practical Management Science, Revised

ISBN: 9781118373439

3rd Edition

Authors: Wayne L Winston, S. Christian Albright

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