Problems:

#1

1. For the following transportation problem find the initial solution and perform one iteration to improve your initial solution. Calculate the transportation cost for both solutions.

Destination Origin	1	2	3	4	5	Supply
A	$10	$14	$8	$12	$6	1400
B	$14	$20	$10	$18	$4	600
C	$12	$22	$30	$26	$12	1000
D	$15	$21	$32	$25	$24	1000
Demand	1200	400	1000	600	800

2. Solve this problem using excel.

#2

For the above problem, assume that the demand for 4 becomes 1000. Solve the problem repeating the same steps in problem 1 (complete A and B).