1. Consider the transportation problem in Table 1. Table 1: Data for the transportation problem Demand D1 D2 D3 Supply $5 $1 $7 10 $6 80 $6 $4 $3 $2 $5 75 20 50 55 Supplier S1 S2 S3 Demand (a) Use the least-cost method to find the starting solution (20 marks). (b) Develop the iterations that lead to the optimum solution. (40 marks). (c) Assuming the supplier S3 encounters a technical problem which leads to a shortage of supply, and the original supply of 55 units is reduced to 15 units. Suppose that the penalty costs per unit of unsatisfied demand are $5, $3, and $2 for destinations D1, D2, and D3, respectively. Using the least-cost starting solution, determine all iterations leading to optimum solution. (40 marks).

1. Consider the transportation problem in Table 1. Tahle 1. Data for the tranenort ation nwhlem (a) Use the least-cost method to find the starting solution (20 marks). (b) Develop the iterations that lead to the optimum solution. (40 marks). (c) Assuming the supplier S3 encounters a technical problem which leads to a shortage of supply, and the original supply of 55 units is reduced to 15 units. Suppose that the penalty costs per unit of unsatisfied demand are \$5, \$3, and \$2 for destinations D1, D2, and D3, respectively. Using the least-cost starting solution, determine all iterations leading to optimum solution. (40 marks). 1. Consider the transportation problem in Table 1. Tahle 1. Data for the tranenort ation nwhlem (a) Use the least-cost method to find the starting solution (20 marks). (b) Develop the iterations that lead to the optimum solution. (40 marks). (c) Assuming the supplier S3 encounters a technical problem which leads to a shortage of supply, and the original supply of 55 units is reduced to 15 units. Suppose that the penalty costs per unit of unsatisfied demand are \$5, \$3, and \$2 for destinations D1, D2, and D3, respectively. Using the least-cost starting solution, determine all iterations leading to optimum solution. (40 marks)