Question: See worksheet Transportation - Utility , where we are solving a variation of the transportation problem. Each customer has a utility function, and we want
See worksheet Transportation Utility where we are solving a variation of the transportation
problem. Each customer has a utility function, and we want to maximize total customer utility subject to
the constraints that: i suppliers cannot exceed their capacity; and ii we cannot exceed our total budget
for variable shipping cost. Note that there is no demand constraint in this problem, the customer demand
is now expressed through their utility functions in the problem objective. We want to make the customers
collectively as happy as possible, subject to our supplier capacity constraints and variable shipping cost
constraints.
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