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4. Location 1 Location 2 Location 1 Location3 Location 1 Location4 Location 1 Location5 Location 1 Location6 A car rental company currently has a
4. Location 1 Location 2 Location 1 Location3 Location 1 Location4 Location 1 Location5 Location 1 Location6 A car rental company currently has a surplus of 16 cars in location 1 and 18 cars in location 2. Other four locations of the company (Locations 3, 4, 5, and 6) need 10 cars each to support demand. The costs of getting cars from locations 1 and 2 to the other locations are: Location3 Location4 Location5 Location6 5400 2400 1700 1800 2300 1900 3000 3100 For example, it costs $1700 to ship a car from location 1 to location 4. The linear programming model that solves this problem, where the variables are the number of cars shipped from location 'I' to location 'j', is: Minimize Total Transportation cost Subject to Constl # of cars shipped to location 3 < Const 2 # of cars shipped to location 4 Const3 # of cars shipped to location 5 Const 4 # of cars shipped to location 6 Const 5 # of cars shipped from location I Const 6 # of cars shipped from location 2 = The Solver solution ofthis model is: Variables From Location 2 Location3 Location 2 Location4 Location 2 Location5 Location 2 Location6 Constraints Final Value Final Value Reduced Cost 2600 Shadow Price -1300 3000 2600 -10 = 16 18 Objective Coefficient 5400 1700 2300 3000 2400 1800 1900 3100 Constraint R.H. Side Allowable Increase 1+30 500 200 500 200 1+30 500 1+30 Allowable Increase 1+30 Allowable Decrease 2600 1+30 500 200 1+30 500 200 500 Allowable Decrease cell Constl Const2 Const3 Const4 Const5 Const6 Name Location3 Receives Location4 Receives Location5 Receives Location6 Receives Location 1 Ships Location 2 Ships
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