2. Breaking Bad Company ships truckloads of grain from three warehouses to four distribution centres. The...

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2. Breaking Bad Company ships truckloads of grain from three warehouses to four distribution centres. The supply (in truck loads), the demand (in truckloads), and the unit transportation costs per truckload on the different routes are summarized in table below. Warehouses Warehouse 1 Warehouse 2 Warehouse 3 Demand (in truck loads) Distribution centre 1 $100 $120 $40 50 Distribution centre 2 $20 $70 $140 150 Distribution centres Distribution centre 3 2 $200 $90 $160 150 Distribution centre 4 $110 $200 $180 150 Supply(in truck loads) 150 250 100 Now, Breaking Bad Company wants to ship all the truckloads at a minimum cost and wants to fulfill the demand of all the distribution centres. Based on the information given above, answer the following questions. Also, clearly write down each of the steps. a) Write down linear programming for this transportation problem consistent with the objective of Breaking Bad Company [3] b) Using the Vogel Approximation Method (VAM), determine the optimal allocation of the truckloads of the Breaking Bad Company between different warehouses and distribution centres that will minimize the cost and fulfill the demand of all the distribution centres. (Use manual process) [6] c) What is the minimum cost incurred by Breaking Bad Company as per VAM method? [1] 2. Breaking Bad Company ships truckloads of grain from three warehouses to four distribution centres. The supply (in truck loads), the demand (in truckloads), and the unit transportation costs per truckload on the different routes are summarized in table below. Warehouses Warehouse 1 Warehouse 2 Warehouse 3 Demand (in truck loads) Distribution centre 1 $100 $120 $40 50 Distribution centre 2 $20 $70 $140 150 Distribution centres Distribution centre 3 2 $200 $90 $160 150 Distribution centre 4 $110 $200 $180 150 Supply(in truck loads) 150 250 100 Now, Breaking Bad Company wants to ship all the truckloads at a minimum cost and wants to fulfill the demand of all the distribution centres. Based on the information given above, answer the following questions. Also, clearly write down each of the steps. a) Write down linear programming for this transportation problem consistent with the objective of Breaking Bad Company [3] b) Using the Vogel Approximation Method (VAM), determine the optimal allocation of the truckloads of the Breaking Bad Company between different warehouses and distribution centres that will minimize the cost and fulfill the demand of all the distribution centres. (Use manual process) [6] c) What is the minimum cost incurred by Breaking Bad Company as per VAM method? [1]

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This problem involves formulating a linear programming model for a transportation problem and solving it using the Vogel Approximation Method VAM Here... View the full answer