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Consider an identical scenario to the transportation problem discussed in class ( Example 3 - 3 on pages 9 2 - 9 3 ) ,
Consider an identical scenario to the transportation problem discussed in class Example
on pages except that transportation costs per unit along the links are given by
in dollarsunit
Facility p p c c c
w
w
Solve that is determine the product flows on each of the links and also the total cost
each of the following scenarios independently:
a Formulate the LP linear program and solve it ie determine the optimal product
flows on each of the links and also the minimum total cost.
b Suppose you have the option of paying a fixed cost of C in order to hire a fleet of
more fuelefficient trucks. The fuelefficient trucks will reduce all of the per unit
transportation costs given in the table above by $ Solve the resulting fuelefficient
LP and determine the range of C for which you will prefer to hire the more fuelefficient
trucks.
c Suppose you considering adding capacity to plant in order to remove the capacity
constraint. How much money could you save on the transportation cost if you were
to do this?
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