Jane Melrose packages holiday gift-wrapped exotic fruits. Her packages are wrapped at two locations from which...

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Jane Melrose packages holiday gift-wrapped exotic fruits. Her packages are wrapped at two locations from which they are sent to five shops. The costs of packaging at locations 1 and 2 are $5.25 and $5.70 per package, respectively. Jane's demand forecasts indicate that shipments must be made as shown in the following table. Shop 1 Packages Required 4,000 Location 1 2 2 6,000 4 3 3,000 9,000 Wrapping capacity at location 1 is 20,000 packages and at location 2 it is 12,000 packages. The distribution costs per package (in $'s) from the two locations to the five shops are given in the following table. (b) Shop 3 1 2 4 0.06 0.04 0.09 0.12 0.15 0.09 0.05 0.08 5 8,000 5 0.05 0.08 Jane wishes to determine how many packages to send from each location to each shop in order to minimize cost. (a) Formulate this problem as a transportation problem by constructing the appropriate cost and requirements table. Use LINDO to find the optimal solution for the problem. Jane Melrose packages holiday gift-wrapped exotic fruits. Her packages are wrapped at two locations from which they are sent to five shops. The costs of packaging at locations 1 and 2 are $5.25 and $5.70 per package, respectively. Jane's demand forecasts indicate that shipments must be made as shown in the following table. Shop 1 Packages Required 4,000 Location 1 2 2 6,000 4 3 3,000 9,000 Wrapping capacity at location 1 is 20,000 packages and at location 2 it is 12,000 packages. The distribution costs per package (in $'s) from the two locations to the five shops are given in the following table. (b) Shop 3 1 2 4 0.06 0.04 0.09 0.12 0.15 0.09 0.05 0.08 5 8,000 5 0.05 0.08 Jane wishes to determine how many packages to send from each location to each shop in order to minimize cost. (a) Formulate this problem as a transportation problem by constructing the appropriate cost and requirements table. Use LINDO to find the optimal solution for the problem.

Answer rating: 100% (QA)

Solution a Here are the cost and requirements tables for this transportation problem C... View the full answer