17. Computers Unlimited sells microcomputers to universities and colleges on the East Coast and ships them from three distribution warehouses. The firm is able to supply the following numbers of microcomputers to the universities by the beginning of the academic year. Distribution Warehouse Supply (microcomputers) 1. Richmond 2. Atlanta 3. Washington, DC. Total 420 610 340 1,370 Four universities have ordered microcomputers that must be delivered and installed by the begin- ning of the academic year. University Demand (microcomputers) A. Tech 520 B. A and M 250 C. State 400 D. Central Total 380 1,550 PROBLEMS B-33 The shipping and installation costs per microcomputer from each distributor to each university are as follows. To From A B C D 1 $22 17 30 18 2 15 35 20 25 3 28 21 16 14 a. Find the initial solution using VAM. b. Solve using MODI. 18. In problem 17, Computers Unlimited wants to better meet demand at the four universities it sup- plies. It is considering two alternatives: (1) expand its warehouse at Richmond to a capacity of 600 at a cost equivalent to an additional S6 in handling and shipping per unit, or (2) purchase a new warehouse in Charlotte that can supply 300 units with shipping costs of $19 to Tech, $26 to A and M, $22 to State, and $16 to Central. Which alternative should management select based solely on transportation costs (i.e., no capital costs)? 19. Computers Unlimited in problem 17 has determined that when it is unable to meet the demand for microcomputers at the universities it supplies, the universities tend to purchase microcomputers elsewhere in the future. Thus, the firm has estimated a shortage cost for each microcomputer demanded but not supplied that reflects the loss of future sales and goodwill. These costs for each university are as follows: University Cost/Microcomputer A. Tech B. A and M C. State $40 65 25 50 D. Central Solve problem 17 with these shortage costs included. Compute the total transportation cost and the total shortage cost.