Question: Consider the following transportation problem with the goal of minimizing total cost: Dest. 1 Dest. 2 Dest. 3 Dest. 4 Supply Source 1 $5 $1

Consider the following transportation problem with the goal of minimizing total cost:

Dest. 1

Dest. 2

Dest. 3

Dest. 4

Supply

Source 1

$5

$1

$5

$3

300

Source 2

$8

$9

$10

$4

800

Source 3

$4

$3

$8

$2

500

Demand

500

500

200

400

The cost ($/ unit) for transporting from source i to destination j is given in the table. The demand for each destination and the supply from each source is also given in the demand row and the supply column, respectively.

  1. Formulate an LP model for the problem.
  2. Is this a balanced transportation problem? Why? If it is not balanced, modify the transportation table to make it balanced.
  3. Use the Least Cost method to find an initial solution to the problem. What is the total cost?
  4. Use the Northwest Corner method to find an initial solution to the problem. What is the total cost?
  5. Use Vogels Approximation method to find an initial solution to the problem. What is the total cost in this case?
  6. Find the optimal solution starting with the initial solution of Vogels Approximation method.

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