Question: Coding not required, just would like to understand the solution 1. A company supplies goods to three customers, who require 40, 50 and 40 units

 Coding not required, just would like to understand the solution 1.

Coding not required, just would like to understand the solution

1. A company supplies goods to three customers, who require 40, 50 and 40 units respectively. The company has three warehouses, each of which has 30 units available. The costs of shipping 1 unit from each warehouse to each customer are shown in the table below To From Customer 1 Customer 2 Customer 3 Warehouse 1 $35 $15 $25 $50 $40 $10 $20 $40 $30 Warehouse 2 Warehouse 3 There is a penalty for unmet demand: With customer 1, a penalty cost of $70 per unit is incurred; with customer 2, $75 per unit; and with customer 3, $65 per unit. The company needs to minimize the total cost. (a) Non-coding. Formulate the problem as a balanced transportation prob- lem by adding a dummy warehouse. Write down the mathematical for mulation, including the definition of variables, the objective function and all constraints. (b) Coding. Create a Jupyter notebook named company.ipynb to solve the problem. Display values of all variables. (The optimal value is $4,950.) 1. A company supplies goods to three customers, who require 40, 50 and 40 units respectively. The company has three warehouses, each of which has 30 units available. The costs of shipping 1 unit from each warehouse to each customer are shown in the table below To From Customer 1 Customer 2 Customer 3 Warehouse 1 $35 $15 $25 $50 $40 $10 $20 $40 $30 Warehouse 2 Warehouse 3 There is a penalty for unmet demand: With customer 1, a penalty cost of $70 per unit is incurred; with customer 2, $75 per unit; and with customer 3, $65 per unit. The company needs to minimize the total cost. (a) Non-coding. Formulate the problem as a balanced transportation prob- lem by adding a dummy warehouse. Write down the mathematical for mulation, including the definition of variables, the objective function and all constraints. (b) Coding. Create a Jupyter notebook named company.ipynb to solve the problem. Display values of all variables. (The optimal value is $4,950.)

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