Since all cell values are either negative or zero (maximization problem), the initial basic feasible solution of table 3.153 is optimal . The demand at Ranchi is left unsatisfied by 5 units. The profit corresponding to the above scheme is 2mex = ? [90 x 70 + 90 x 100 + 110 x 30 + 130 x 100+ 0 * 5) = 31,609 f30 3.6-3 Different Production costs Sometimes a particular product may be manufactured at and then transported from different production plants. The production cost could be different in different units due to various reasons e.g., new and more automation will bring down the product cost. In such problems the manufacturing cost is added to the transportation cost while finding the optimal solution (Refer examples 3.6-1 and 36-3). If in a transportation problem along with the variable production costs, fixed costs at various production plants are also given, the latter are neglected and no consideration is given to them while solving the problem (Refer exercise 30 (b)). 3.6-4 No Allocation in Particular Cell/Cells In a transportation problem, some routes may be prohibited due to reasons such as road blockage, strike by route carriers, floods, etc. To avoid allocation in a particular cell/cells, a heavy penalty cost (More) is assigned to that cell/cells and then the problem is solved in the usual manner EXAMPLE 3.6-6 A company has factories at four different places, which supply warehouses A, B, C, D and E. Monthly factory capacities are 200, 175, 150 and 325 units respectively. Monthly warehouse requirements are 110, 90, 120, 230 and 160 units respectively. Unit shipping costs are given in table 3.157. The costs are in rupees. TABLE 3.157 A B C D E From 1 13 3/ 8 20 2 14 9 17 10 3 25 11 12 17 15 4 10 27 13 17 Shipment from / to B and from 4 to D is not possible. Determine the optimum distribution to minimize shipping costs