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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
3-3 on pages 92-93), except that transportation costs per unit along the links are given by
(in dollars/unit)
Facility p1 p2 c1 c2 c3
w134345
w252212
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, i.e., 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 fuel-efficient trucks. The fuel-efficient trucks will reduce all of the per unit
transportation costs given in the table above by $1. Solve the resulting fuel-efficient
LP and determine the range of C for which you will prefer to hire the more fuel-efficient
trucks.
(c) Suppose you considering adding capacity to plant 2, 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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