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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,
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. Shortage City D 8 Surplus City F F F3 No. of cars short 4 7 90 D 6 9 6 65 D3 10 8 5 145 Surplus Cars 105 120 75 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. [5 Marks]
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