Cost of meeting customers demand


Assignment:

The following problems refer to the Powerco example.

Question 1. 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.

 

To

 

 

From

Customer 1

Customer 2

Customer 3

Supply

Plant 1

$55

$65

$80

35

Plant 2

$10

$15

$25

50

Demand

10

10

10

 

a. The company's goal is to minimize the cost of meeting customers' demands. Find two optimal bfs for this transportation problem.

b. Suppose that customer 2's demand increased by one unit. By how much would costs increase?

 

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Macroeconomics: Cost of meeting customers demand
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