In the Network design class, we discussed this simple network problem. This problem with two plants P1 and P2, two warehouses W1 and W2, and three markets C1, C2 and C3 network has been set up using Linear Programming Transportation Model in the MS Excel. The cost data has been provided as well. Plant 2 has an annual capacity of 60,000 units and the demand at C1, C2 and C3 is 50,000, 100,000, and 50,000 respectively.

a)In the highlighted cell B8, where the result shows $740,000. Please describ what exactly are the cost included in the objective function. How to set up this cell using the Excel function and cell reference shown in the above picture. Please spell out the excel function in detail.

(Use this space to answer the question)

b) In the high lighted Cell L15 where the result shows 60000, please explain what this cell means and how to set this cell using the Excel function and cell reference. Please spell out the excel function in detail.

(Use this space to answer the question)

One product Two Plant and Two Warehouses and Three Markets Example This column captures the value of the left hand value of each Upjective runction