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Question 3 [13 Marks] A company imports goods at three ports of Oman: Salalah, Sohar and Khasab. Shipments of one of its products are made

Question 3 [13 Marks]

  1. A company imports goods at three ports of Oman: Salalah, Sohar and Khasab. Shipments of one of its products are made to customers in Muscat, Nizwa, Bawshar and Ibri. For the next planning period, the suppliers at each port, customer demands, and the shipping costs per case from each port to each customer are shown in Table 2 below.

Table 2

Customers

Port

Muscat

Nizwa

Bawshar

Ibri

Port Supply

Salalah

2

6

6

2

4000

Sohar

1

2

5

7

3000

Khasab

7

6

13

15

2000

Demand

2000

3200

2200

1600

(ii) Let us suppose at the last minute the management found that the Sohar port could not deliver the product to Nizwa. Re-solve the problem by making the necessary changes to your Excel model, write down the new objective function value below.

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