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2. There are two countries, A and B. The cost of transportation is $1 per item from A to B, $3 per item from B

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2. There are two countries, A and B. The cost of transportation is $1 per item from A to B, $3 per item from B to A, zero otherwise. Fixed cost for factory in A is $100, for Bit is $150, both with 100 capacity. A has a demand of 40, B has a demand of 50. a. What is the optimal solution? Answer: Open only A with 150 cost b. What is the optimal production and shipment solution? Answer: Open only A, produce 90, ship 50 to B C. What is the problem with the solution;, ,, others are zero Answer: it violates the demand constraint for B 2. There are two countries, A and B. The cost of transportation is $1 per item from A to B, $3 per item from B to A, zero otherwise. Fixed cost for factory in A is $100, for Bit is $150, both with 100 capacity. A has a demand of 40, B has a demand of 50. a. What is the optimal solution? Answer: Open only A with 150 cost b. What is the optimal production and shipment solution? Answer: Open only A, produce 90, ship 50 to B C. What is the problem with the solution;, ,, others are zero Answer: it violates the demand constraint for B

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