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CH_08S_10th_Edition - The Transportation Model CHAPTER 8S...

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The Transportation Model CHAPTER 8S THE TRANSPORTATION MODEL PROBLEMS P1. A firm has four factories, # 1, 2, 3, 4, which ship their output to two warehouses, A and B. The capacities of the factories for one month, the requirements of the warehouses for one month, and the costs of shipping one unit from each factory to each warehouse in dollars are given below. Factory Capacity Warehouse Requirements (Rows) (units) (Columns) (units) 1 250 A 600 2 400 B _700 3 450 Total 1,300 4 350 Total 1,450 To: A B 1 $12 $10 From 2 14 11 3 9 12 4 8 7 a. Set up the transportation matrix. b. What type of dummy constraint is required? c. How many units are in the dummy constraint? d. What is the objective function? e. What are the constraints? P2. Solve Problem P1 by using an EXCEL spreadsheet. a. How do you enter the problem on the EXCEL spreadsheet? b. How do you enter the objective function? c. How do you enter the constraints? d. What is the solution? e. What is the total cost? f. What is the interpretation of the 150 dummy units? P3. A firm has two factories, # 1 and 2, which ship their output to four warehouses, A, B, C, D. The
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