Question: The demand for a perishable item over the next four months is 400, 300, 420, and 380 tons, respectively. The supply capacities for the same
The demand for a perishable item over the next four months is 400, 300, 420, and 380 tons, respectively. The supply capacities for the same months are 500, 600, 200, and 300 tons. The purchase price per ton varies from month to month and is estimated at $100, $140, $120, and $150, respectively. Because the item is perishable, a current month's supply must be consumed within 3 months (starting with current month). The storage cost per ton per month is $3. The nature of the item does not allow back-ordering. Solve the problem as a transportation model and determine the optimal delivery schedule for the item over the next 4 months.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
