Question: The Onenote Co. produces a single product at three plants for four customers. The three plants will produce 80, 100, and 60 units, respectively, during

The Onenote Co. produces a single product at

The Onenote Co. produces a single product at three plants for four customers. The three plants will produce 80, 100, and 60 units, respectively, during the next time period. The firm has made a commitment to sell 60 units to customer 1, 80 units to customer 2, and at least 40 units to customer 3. Both customers 3 and 4 also want to buy as many of the remaining units as possible. The net profit associated with shipping a unit from plant i for sale to customer j is given by the following table: Customer 1 2 3 4 $800 500 $700 200 Plant 2. $500 100 300 $200 300 500 600 400 Management wishes to know how many units to sell to customers 3 and 4 and how many units to ship from each of the plants to each of the customers to maximize profit. Starting with Russell's approximation method, interactively apply the transportation simplex method to obtain an optimal solution for this problem. Profit = $

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