8.1-6. The Onenote Co. produces a single product at three plants
for four customers. The three plants will produce 60, 80, and 40
units, respectively, during the next time period. The firm has made
a commitment to sell 40 units to customer 1, 60 units to customer
2, and at least 20 units to customer 3. Both customers 3 and 4 also
want to buy as many of the remaining units as possible. The net
profit associated with shipping a unit from plant i for sale to customer
j is given by the following table:
Management wishes to know how many units to sell to customers
3 and 4 and how many units to ship from each of the plants to each
of the customers to maximize profit.
(a) Formulate this problem as a transportation problem where the
objective function is to be maximized by constructing the appropriate
parameter table that gives unit profits.
8.1-6. The Onenote Co. produces a single product at three plantsfor four customers. The three plants will produce 60, 80, and 40units, respectively, during the next time period. The firm has madea commitment to sell 40 units to customer 1, 60 units to customer2, and at least 20 units to customer 3. Both customers 3 and 4 alsowant to buy as many of the remaining units as possible. The netprofit associated with shipping a unit from plant i for sale to customerj is given by the following table:Management wishes to know how many units to sell to customers3 and 4 and how many units to ship from each of the plants to eachof the customers to maximize profit.(a) Formulate this problem as a transportation problem where theobjective function is to be maximized by constructing the appropriateparameter table that gives unit profits.
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