Andreasayan Susanna hmwrk3.docx - Andreasayan Susanna...

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Andreasayan Susanna Homework 3 1. The company’s problem is to minimize transportation costs. 2. The exel files are attached. 3. Given the parameters and resource constraints, the minimized cost is 13375. IN order to minimize costs the company should deliver from Austin to Dallas 35 units, from Austin to Fort Worth 65 units, from Beaumont to El Paso 70 units, from Beaumont to Houston 10 units, from Corpus Christi to Dallas 15 units, from Corpus Christi to Galveston 55 units, from Corpus Christi to Houston 80 units, in other directions is unprofitable to deliver. All nonnegativity constraint are satisfied. If deliver from Auction to El Paso, the delivery cost will increase by 23 dollar, ceteris paribus. The same for others. (Reduced costs). If demand required from Dallas increase by one unit the objective function will increase by 55 dollars, everything else held constant. 4.
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