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produce up to 6 , 5 0 0 cars per month, and the Dallas plant can produce up to 6 , 0 0 0 cars

produce up to 6,500 cars per month, and the Dallas plant can produce up to 6,000 cars per
month. Producing a car costs $2,000 in Detroit and $1,800 in Dallas. Cars must be shipped to
three cities. Each month, Los Angeles must receive 5,000 cars, Atlanta must receive 4,000
cars, and St. Louis must receive 3,000 cars. Cars may also be shipped through Memphis and
Denver. The cost of shipping a car between cities is given in the table below. At most 2,200
cars may be sent directly from any one city to any other city. The goal is to find the
production and distribution plan that minimizes total cost and feasibly delivers cars from the
production locations to the customer locations.
i. Formulate this problem as a minimum cost network flow. Draw the network, label all
nodes, and specify the upper bounds and costs of all arcs, as well as the net supplies
of all nodes.
ii. Now suppose that at most 4,000 cars may be shipped through Memphis, and at most
3,000 cars may be shipped through Denver. How would you modify your network in
part (i) to include this new restriction?
iii. Suppose the company wanted to add a restriction that the number of cars shipped
from Memphis to Atlanta plus the number of cars shipped from Denver to Los
Angeles could be at most 3000. Can this constraint be enforced in a network flow
model?
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