Question: The demand for a perishable item over the next four months is 4 0 0 , 3 0 0 , 4 2 0 , and

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 $150, respectively.
Because the item is perishable, a current months supply must be consumed within 3 months (starting
with current month). The storage cost per ton per month is 3$. The nature of the item does not allow
back-ordering. Formulate the problem as a transportation model and find an initial solution by
Northwest-corner method.

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