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QUESTION 4: Transportation Problem (19 points) The Hardgrave Machine Company produces computer components at its plants in Kingston, ON Prince George, BC; and Sudbury, ON.
QUESTION 4: Transportation Problem (19 points) The Hardgrave Machine Company produces computer components at its plants in Kingston, ON Prince George, BC; and Sudbury, ON. These plants supply the demand for orders at Hardgrave's two warehouses in Hamilton and Regina. The tables below present the information of: i) the production cost and capacity for each of the three plants, and the demand at each of the two warehouses Production Cost per Unit (S) Production Plant Kingston Prince George Sudbury Monthly Supply (units) 15,000 20,000 25,000 $50 $55 $45 Warehouse Hamilton Regina Monthly Demand (Units) 35,000 30,000 Transportation costs per unit from each plant to each warehouse are summarized in the following table: Hamilton Regina To: From: Kingston Prince George Sudbury $10 $25 $15 S20 S30 $20 Recent regulations require that no more than 8.000 units are to be shipped from the plant in Kingston to the Warehouse located in Hamilton. Also, at least 30% of the total computer components shipped to the warehouse in Regina are from the plant in Prince George. Formulate algebraically the above problem to help Hardgrave satisfy the demand at the warehouses at the lowest production and transportation costs. Define the decision variables, objective function, and constraints. DO NOT SOLVE
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