Table 4: Demand Data

City	A	B	C	D	E	F	G	H
Demand	1200	580	970	1100	850	1220	600	790

The unit transportation costs are shown in Table 5.

Table 5: Unit Transportation Cost

City	A	B	C	D	E	F	G	H
Plant 1	13	15	19	17	23	21	15	9
Plant 2	14	14	10	11	23	20	23	16
Plant 3	10	17	17	23	9	15	22	19
Plant 4	10	5	9	12	8	15	15	20

The production capacity of each plant is shown in Table 6.

Table 6: Production Capacity

Plant	1	2	3	4
Capacity	1800	2600	2500	1800

Part 3.

Use the same data from Tables 4, 5, and 6. Now suppose the demand of EACH city in Table 4 increases by 10%. Solve the problem again using the new demand numbers.

Use Excel Solver to find the optimal transportation plan that minimizes the total transportation cost.

Report the transportation plan in Microsoft WORD using the following format.

City A demand is met by plant x (?? units), plant y (?? units), etc

City B demand is met by plant x (?? units), plant y (?? units), etc.

City C demand is met by plant x (?? units), plant y (?? units), etc.

City D demand is met by plant x (?? units), plant y (?? units), etc.

City E demand is met by plant x (?? units), plant y (?? units), etc.

City F demand is met by plant x (?? units), plant y (?? units), etc.

City G demand is met by plant x (?? units), plant y (?? units), etc.

City H demand is met by plant x (?? units), plant y (?? units), etc.

Question:

1. Which plants are operated at the full capacity?

2. Report the total transportation cost for each city.

3. What is the total transportation cost?

4. when the demand of each city increases by 10%, is the shipment between each plant/city pair also increases by exactly 10%? Is the total transportation cost increased by 10% as well or it is increased by more than 10%? Why?