Question: Problem 5 ( Adapted from Winston, 2 0 0 4 ) : A company supplies goods to three customers, who each require 3 0 units.

Problem 5(Adapted from Winston, 2004): A company supplies goods to three customers, who each
require 30 units. The company has two warehouses. Warehouse 1 has 40 units available, and warehouse
2 has 30 units
There is a penalty for each unmet unit of customer demand: With customer 1, a penalty of $90 is
incurred; with customer 2,$80; and with customer 3,$110.
Formulate a balanced transportation problem to minimize the sum of shortage and shipping costs. For
this problem, you should provide a drawing of the minimum-cost flow network. Explain in words what
nodes and arcs represent, and label nodes and arcs with all relevant data.
 Problem 5(Adapted from Winston, 2004): A company supplies goods to three

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!