Question: Transportation Problem: Small Electronics Company. A small electronics company wants to send a sensor that it makes from three factories to three warehouses. The factories
Transportation Problem: Small Electronics Company. A small electronics company wants to send a sensor that it makes from three factories to three warehouses. The factories are in Atlanta, Chicago, and San Diego, and the warehouses are in Newark, Dallas, and Phoenix. The cost of shipping from each factory to each warehouse is shown below along with the capacities at each factory and the requirements at each warehouse.
| Newark | Dallas | Phoenix | Available | |
| Atlanta | 6.50 | 7.00 | 8.50 | 900 |
| Chicago | 6.00 | 6.50 | 7.50 | 1,000 |
| San Diego | 9.00 | 7.50 | 5.00 | 1,200 |
| Required | 600 | 450 | 800 |
a. What is the optimal solution to this problem?
| X11 = | X12 = | X13 = |
| X21 = | X22 = | X23 = |
| X31 = | X32 = | X33 = |
Total cost = $
b. What are the shadow prices for shipping more to Newark, Dallas, or Phoenix? (Round your answer to one decimal place where needed.)
| Shadow Price | Allowable Increase | Allowable Decrease | |
| Newark | |||
| Dallas | |||
| Phoenix |
c. If we could charge $8 per unit for each additional unit shipped to the Phoenix warehouse, how much profit would we make for each additional unit?
Profit = $
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