Question: Question 3) (35 points) Consider a transportation problem with the following supply, and cost information. Customer Supply 2 3 Capacity 10 10 50 Supplier 1

Question 3) (35 points) Consider a transportation

Question 3) (35 points) Consider a transportation problem with the following supply, and cost information. Customer Supply 2 3 Capacity 10 10 50 Supplier 1 7 5 9 B D 9 10 10 10 8 7 5 50 50 50 We want to determine a shipment plan to satisfy customer's demand in the month of April. We do not have demand information for April. But we have historical demand data for the previous 11 months for each of the customers. Customer 1 Customer 3 48 46 Period Month 1 May 2 June 3 July 4 August 5 September 6 October 7 November 8 December 9 January 10 February 11 March 30 45 33 60 62 Demand Customer 2 55 47 43 60 54 46 45 44 55 44 33 53 58 52 54 65 69 71 74 75 67 69 99 102 107 103 a) Apply the following three forecasting models to predict April's demand for each customer. i i) 4-month moving average ii) Exponential Smoothing with a = 0.4 iii) Trend Line (regression) b) Use Mean Squared Error (MSE) evaluation method to select the best forecasting model for each customer. Report MSE of each forecasting model for each customer. c) For each customer, put April's prediction of the best model in the table below: Customer 2. April Demand d) Use Excel to solve a transportation problem for the month of April based on cost, supply and demand information of yellow tables. (If you could not solve parts a, b, c, use demands of 55, 65, and 70 for customers 1, 2, and 3 respectively). You should make sure that demand of the customers is satisfied, and supply capacity of the suppliers is not violated. What is the minimum transportation cost for this

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