Question: Problem 2 (1/2) EnerCo has three electric power plants with capacities 25, 40, and 30 million kWh supply electricity to three cities. The maximum electricity

 Problem 2 (1/2) EnerCo has three electric power plants with capacities

Problem 2 (1/2) EnerCo has three electric power plants with capacities 25, 40, and 30 million kWh supply electricity to three cities. The maximum electricity demands for each cities are 36, 42, and 30 million kWh. The price per million kWh at the three cities are shown at the table below: Distribution Cost to City ($/million kWh) Plant 1 2 21 31 600 320 500 700 300 480 400 350 450 Problem 2 (2/2) If the supply cannot fulfill the required demand, EnerCo can purchase electricity for $1000 per million kWh. However, the outsourced electricity cannot supply to the 3rd city. a) Formulate the problem as a transportation problem (mathematical model and parameter table)! b) Use Vogel's Method to determine the initial BFS! Explain each step but you do not need to rewrite the tableau for each iteration. c) Use the transportation simplex method to determine the optimal distribution plan and cost for Enerco! Explain each step but you do not need to rewrite the tableau for each iteration

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