Answer to Question #65631 in Economics of Enterprise for Abdullahi

Question

Q2. A firm has three stores with a total of 80 computers. An order is received from the Local Authority for 70 units to be delivered to 4 schools. The transport costs in $`s from stores to schools are shown below together with the availabilities and requirements. (15mks)
schools
Stores
I
II
III A B C D supply
3 5 2 6 35
4 3 3 1 25
2 1 5 2 20
Demand 18 27 17 8

a) It is required to make the most economic deliveries.
Set up the initial tableau and make the initial feasible deliveries.
b) find the transportation schedule that minimizes cost.