Question 2

Tobacco is stored in warehouses in four cities at the end of the harvest season.

Location

Capacity

A

B

C

D

90

50

80

60

280

These warehouses supply tobacco to cigarette companies in three cities, as follows

Factory

Demand (ton)

1

2

3

120

100

110

330

Railroad shipping costs per ton of tobacco are shown in the table below. Due to the construction of the railway line, for the time being the delivery cannot be carried out from location A to factory 1.

To

From

1

2

3

A

B

C

D

$7

12

7

9

10

9

3

5

5

4

11

7

1.Prepare a transportation table for this problem, determine the initial solution using the northwest corner rule, and calculate the total transportation cost. (4 marks)

2.Complete by using the stepping stone method.(4 marks)

3.Formulate this problem as a linear programming model. (2 marks)