Question: The demand for a perishable item over the next four months is 4 0 0 , 3 0 0 , 4 2 0 , and

The demand for a perishable item over the next four months is 400,300,420, and 380 tons, respectively. The supply capacities for the same months are 500,600,200, and 300 tons. The purchase price per ton varies from month to month and is estimated at $100, $140, $120, and $150, respectively. Because the item is perishable, a current months supply must be consumed within 3 months (starting with current month). The storage cost per ton per month is 3$. The nature of the item does not allow back-ordering. Formulate the problem as a transportation model and find an initial solution by Northwest-corner method.The demand for a special small engine over the next five quarters is 200,150,300,250, and
400 units, respectively. The manufacturer supplying the engine has different production
capacities estimated at 180,230,430,300, and 300 for the five quarters. Back-ordering is not
allowed, but the manufacturer may use overtime to fill the immediate demand, if necessary.
The overtime capacity for each period is half the regular capacity. The production costs
per unit for the five periods are $100, $96, $116, $102, and $106, respectively. The overtime
production cost per engine is 50% higher than the regular production cost. If an engine is
produced now for use in later periods, an additional storage cost of $4 per engine per period
is incurred. Formulate the problem as a transportation model. Determine the optimum
number of engines to be produced during regular time and overtime of each period.

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