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Cape Hope company grows oranges in different farms, farm A, B and C and the oranges are processed into juice at the farms and stored

Cape Hope company grows oranges in different farms, farm A, B and C and the oranges are processed into juice at the farms and stored in refrigerated vats.

The juice is then transported into two plants where it's bottled into orange juice and frozen concentrate which are then shipped to distribution centers F, G & H.

Transportation from Farm to plants and to the distributors is as shown below. Also supply from farm and demand at the distribution centers is summarized in the tables below.

Plant
Farm D E Supply (Tons)
A 180 200 750
B 210 190 1200
C 220 250 900

Distribution centers

F G H
D 230 150 290
E 200 170 240
Demand (Tons) 1000 800 1050

The management objective is to minimize total transport cost. Assume no stock is allowed to be stored in the plants.

Required;

  1. Calculate the Optimal objective value and the optimal solution point by using computer.
  2. Optimal solution network based on the solution in (a) above. Specify the amount of shipment for each destination.
  3. How many tons of oranges will be processed by the plant (E) at the optimal solution?
  4. If the transportation cost from C to E is increased to 300, what's the new minimum transportation total cost.

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