The Medequip Company produces precision medical diagnostic
equipment at two factories. Three medical centres have placed orders for this month’s
production output. The table to the right shows what the cost would be for shipping each unit
from each factory to each of these customers. Also shown are the number of units that will be
produced at each factory and the number of units ordered by each customer.
A decision now needs to be made about the shipping plan for how many units to ship from
each factory to each customer to minimize total shipping cost.
(a) Formulate a linear programming model for this problem.