A firm producing a single product has three plants and four customers. The three plants will produce 3,000, 5,000, and 5,000 units, respectively, during the next time period. The firm has made a commitment to sell 4,000 units to customer 1, 3,000 units to customer 2, and at least 3,000 units to customer 3. Both customers 3 and 4 also want to buy as many of the remaining units as possible. The profit associated with shipping a unit from plant i to customer j is given in Table 82. Formulate a balanced transportation problem that can be used to maximize the company's profit. TABLE 82 To Customer ($) From 1 2 3 4 Plant 1 65 63 62 64 Plant 2 68 67 65 62 Plant 3 63 60 59 60
A firm producing a single product has three plants and four customers. The three plants will produce 3,000, 5,000, and 5,000 units, respectively, during the next time period. The firm has made a commitment to sell 4,000 units to customer 1, 3,000 units to customer 2, and at least 3,000 units to customer 3. Both customers 3 and 4 also want to buy as many of the remaining units as possible. The profit associated with shipping a unit from plant i to customer j is given in Table 82. Formulate a balanced transportation problem that can be used to maximize the company's profit. TABLE 82 To Customer ($) From 1 2 3 4 Plant 1 65 63 62 64 Plant 2 68 67 65 62 Plant 3 63 60 59 60
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 7.5IP
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