The Medequip Company produces precision medical diagnostic equipment at two factories. Three medical centers have placed orders for this month€™s production output. The table below shows what the cost would be for shipping each unit from each factory to each of these customers. Also shown are the number of units that will be produced at each factory and the number of units ordered by each customer.

A decision now needs to be made about the shipping plan for how many units to ship from each factory to each customer.
(a) Formulate a linear programming model for this problem.
(b) Solve this model by the simplex method.

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Unit Shipping Cost To From Factory 1 $600 Factory 2$400 Customer 1 Customer 2 Customer output $700 400 units $600 500 units $800 $900 Order size 300 units 200 units 400 units