Consider the Transportation Problem in the Data Set and Optimal

question 95

Essay

Consider the transportation problem in the data set and optimal solution below. Verify by hand or by calculator (show your work) the value of the objective function. $\begin{array}{|l|r|r|r|r|r|}\hline \text { COSTS } & \text { Dest. 1 } & \text { Dest 2 } & \text { Dest. 3 } & \text { Dest. 4 } & \text { Supply } \\\hline \text { Source 1 } & 12 & 18 & 9 & 11 & 105 \\\hline \text { Source 2 } & 19 & 7 & 30 & 15 & 145 \\\hline \text { Source 3 } & 8 & 10 & 14 & 16 & 50 \\\hline \text { Demand } & 80 & 60 & 70 & 90 & 300/300 \\\hline\end{array}$

$\begin{array}{|lrrrrr|}\hline \text { Shipments } & \text { Dest. 1 } & \text { Dest. 2 } & \text { Dest. 3 } & \text { Dest. 4 } & \text { Row Total } \\\text { Source 1 } & 30 & 0 & 70 & 5 & 105 \\\text { Source 2 } & 0 & 60 & 0 & 85 & 145 \\\text { Source 3 } & 50 & 0 & 0 & 0 & 50 \\\text { Col. Total } & 80 & 60 & 70 & 90 & 300 \backslash 300 \\\hline\end{array}$

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Definitions:

Client-visits

The occurrence of clients or potential clients physically coming to a business location or being visited by the business’s representatives.

High-low Method

A technique used in cost accounting to estimate variable and fixed cost elements of a cost by using the highest and lowest activity levels.

Monthly Production Volume

The total number of units of a product manufactured by a company in a month.

Total Cost

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.