16. The following table shows all necessary information on the availability of supply to each warehouse, the
Question:
16. The following table shows all necessary information on the availability of supply to each warehouse, the requirement of each market and the unit transportation cost from each warehouse to each market:
The shipping clerk has worked out the following schedule from experience: 12 units from A to Q, 1 unit from A to R, 9 units from A to S, 15 units from B to R, 7 units from C to P and 1 unit from C to R.
(a) Check and see if the clerk has the optimal schedule.
(b) Find the optimal schedule and minimum total transport cost.
(c) If the clerk is approached by a courier to route C to Q, who offers to reduce his rate in the hope of getting some business, by how much the rate should be reduced that the clerk will offer him the business?
Step by Step Answer:
