Two plants supply three customers with medical supplies. The unit costs of shipping from the plants to the customers, along with the supplies and demands, are given in Table below.
The company’s goal is to minimize the cost of meeting customers’ demands.
From
To
Customer 1
Customer 2
Customer 3
Supply
Plant 1
55
65
80
35
Plant 2
10
15
25
50
Demand
10
10
10
a) Formulate a linear programming (LP) model for this problem.
b) Use solver to find the optimal transportation rule
c) As a management science student, the MD of the company seeks your expert advice on ways in which to determine the optimal transportation rule. Advise the MD, providing detailed explanation using your answer obtain in (b). Write your answer in a form of a report to the MD.
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