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A car rental firm needs to relocate cars for the coming month. Three of the cities are projected to have a surplus of cars, and
A car rental firm needs to relocate cars for the coming month. Three of the cities are projected to
have a surplus of cars, and three are expected to have a shortage. The following table shows the cost
in hundred shillings of relocating a car from a surplus city to a shortage city. Also shown are the
projected shortages and surplus for the different cities.
Surplus City
Shortage City
D Surplus Cars D D
F
F
F
No of cars short
Determine the number of cars to relocate from each surplus city to each shortage city so as to
minimize total relocation costs. Use the least cost cell method to find the initial basic feasible
solution and modified distribution MODI method to find the optimal solution.
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