East Food Company imports food products such as meats, cheese, and pastries to the U.S. from warehouses at ports in Rome, Seville, and Rotterdam. Ships from these ports deliver the products to U.S. ports, i.e. Hampton, Charleston, and Jacksonville, where they are stored in company warehouses before being shipped to distribution centers in Houston, Kansas City, and Minneapolis. The products are then distributed to specialty food stores and sold through catalogs. The shipping costs ($/1,000 lb.) from the European ports to the U.S. ports and the available supplies (1,000 lb.) at the European ports are provided in the following table: U.S. Ports European Port Supply Hampton Charleston Jacksonville Rome $420 $390 $610 55 Seville 510 590 470 78 Rotterdam 450 360 480 37 The transportation costs ($/1,000 lb.) from each U.S. ports of the three distribution centers and the demands (1,000 lb.) at the distribution centers are as follows: U.S. Ports Houston Distribution Center Kansas City Minneapolis 81 110 75 63 125 Hampton Charleston Jacksonville Demand 68 60 45 50 QUESTION # 4. Consider Question 1 above. Suppose that due certain reasons, the available supply from Seville has been decreased to 50 (in 1,000 lb.). a. [2 Marks Develop a mathematical model that minimizes total transportation costs between the European ports and the warehouses and the distribution center at the U.S., considering the decrease in the available supply from Seville. b. [1 Mark] Solve it using software and show the results. c. [1 Mark) What is the minimum total transportation cost? d. [1 Mark] Discuss the results in the context of the slack/surplus. East Food Company imports food products such as meats, cheese, and pastries to the U.S. from warehouses at ports in Rome, Seville, and Rotterdam. Ships from these ports deliver the products to U.S. ports, i.e. Hampton, Charleston, and Jacksonville, where they are stored in company warehouses before being shipped to distribution centers in Houston, Kansas City, and Minneapolis. The products are then distributed to specialty food stores and sold through catalogs. The shipping costs ($/1,000 lb.) from the European ports to the U.S. ports and the available supplies (1,000 lb.) at the European ports are provided in the following table: U.S. Ports European Port Supply Hampton Charleston Jacksonville Rome $420 $390 $610 55 Seville 510 590 470 78 Rotterdam 450 360 480 37 The transportation costs ($/1,000 lb.) from each U.S. ports of the three distribution centers and the demands (1,000 lb.) at the distribution centers are as follows: U.S. Ports Houston Distribution Center Kansas City Minneapolis 81 110 75 63 125 Hampton Charleston Jacksonville Demand 68 60 45 50 QUESTION # 4. Consider Question 1 above. Suppose that due certain reasons, the available supply from Seville has been decreased to 50 (in 1,000 lb.). a. [2 Marks Develop a mathematical model that minimizes total transportation costs between the European ports and the warehouses and the distribution center at the U.S., considering the decrease in the available supply from Seville. b. [1 Mark] Solve it using software and show the results. c. [1 Mark) What is the minimum total transportation cost? d. [1 Mark] Discuss the results in the context of the slack/surplus
