Question: Section A - Transportation Model (25 Points) Solve problem 1 using Excel or AMPL. Submit supporting work. 1. The Onenote Co. produces a single product

Section A - Transportation Model (25 Points)

Section A - Transportation Model (25 Points) Solve problem 1 using Excel or AMPL. Submit supporting work. 1. The Onenote Co. produces a single product at three plants for four customers. The three plants will produce 60, 80, and 40 units, respectively, during the next time period. The firm has made a commitment to sell 40 units to customer 1, 60 units to customer 2, and at least 20 units to customer 3. Both customers 3 and 4 also want to buy as many remaining units as possible. The net profit associated with shipping a unit from plant I for sale to customerj is given by the following table: Cost Customer (Dollars) 2 3 1 $800 $700 $500 $200 Plant 2 $500 $200 $100 $300 3 $600 $400 $300 $500 Management wishes to know how many units to sell to custonkers 3 and 4 and how many units to ship from each of the plants to each of the customers to maximize profit. a. Formulate this problem as a transportation model. b. What is the optimum shipping model to minimize monthly costs? Section B - Network Models (15 Points) Post

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