Three orchards supply crates of oranges to four retailers. The daily demand amounts at the four retailers are 150, 150, 400, and 100 crates, respectively. Supplies at the three orchards are dictated by available regular labor and are estimated at 150, 200, and 250 crates daily. However, both orchards 1 and 2 have indicated that they could supply more crates, if necessary, by using overtime labor. Orchard 3 does not offer this option. The transportation costs per crate from the orchards to the retailers are given in Table 5.27.

1. Formulate the problem as a transportation model.

2. How many crates should orchards 1 and 2 supply using overtime labor?

Table 5.27 Transportation Cost/Crate for Problem 5-11 1 Orchard 1 $1 Orchard 2 $2 Orchard 3 $1 Retailer 2 $2 $4 $3 3 $3 $1 $5 4 **** $2 $2 $3