The Following Table Shows the Unit Shipping Cost Between Cities

question 17

Essay

The following table shows the unit shipping cost between cities, the supply at each source city, and the demand at each destination city. The Management Scientist solution is shown. Report the optimal solution. $$\begin{array} { l | c c c c | c } & && { \text { Destination } } & \\\text { Source } & \text { Terre Haute } & \text { Indianapolis } & \text { Ft. Wayne } & \text { South Bend } & \text { Supply } \\\hline \text { St. Louis } & 8 & 6 & 12 & 9 & 100 \\\text { Evansville } & 5 & 5 & 10 & 8 & 100 \\\text { Bloomington } & 3 & 2 & 9 & 10 & 100 \\\hline \text { Dem and } & 150 & 60 & 45 & 45 &\end{array}$$ TRANSPORTATION PROBLEM
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OBJECTIVE: MINIMIZATION
SUMMARY OF ORIGIN SUPPLIES
****************************** $$\begin{array} { c c } \text { ORIGIN } & \text { SUPPLY } \\\hline 1 & 100 \\2 & 100 \\3 & 100\end{array}$$ SUMMARY OF DESTINATION DEMANDS
************************************* $$\begin{array} { c c } \text { DESTINATION } & \text { DEMAND } \\\hline 1 & 150 \\2 & 60 \\3 & 45 \\4 & 45\end{array}$$ SUMMARY OF UNIT COST OR REVENUE DATA
******************************************* $\begin{array}{rrrrr}\text { FROM } & {\text { TO DESTINATION }} \\\text { ORIGIN } & 1 & 2 & 3 & 4 \\1 & 8 & 6 & 12 & 9 \\2 & 5 & 5 & 10 & 8 \\3 & 3 & 2 & 9 & 10\end{array}$ OPTIMAL TRANSPORTATION SCHEDULE
************************************** $\begin{array}{rrrrr}\text { SHIP }\\\text { FROM } & {\text { TO DESTINATION }} \\\text { ORIGIN } & 1 & 2 & 3 & 4 \\1 & 0 & 10 & 45 & 45 \\2 & 100 & 0 & 0 & 0 \\3 & 50 & 50 & 0 & 0\end{array}$ TOTAL TRANSPORTATION COST OR REVENUE IS 1755

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Definitions:

High Deductible Health Plan

A High Deductible Health Plan (HDHP) is a health insurance plan with lower premiums and higher deductibles than a traditional health plan, often linked to Health Savings Accounts (HSAs).

Health Savings Account

An account that allows individuals with high-deductible health plans to save money tax-free for medical expenses.

Out-Of-Pocket Expenses

Costs that an individual must pay out of their own cash reserves, including medical expenses, business expenses not reimbursed, and other personal expenditures.

Self-Employed Health Insurance

A deduction that allows self-employed individuals to deduct 100% of their health insurance premiums from their taxable income.