Publisher Dilemma
a – formulate the linear programming model.
b – solve the linear programming model on Excel.
c – print out the sensitivity report.
A publisher has orders for 600 copies of a certain text from San Francisco, 300 copies from San Jose, and 400 copies from Sacramento. The company has 700 copies in a warehouse in Novato and 800 copies in a warehouse in Lodi. It costs $5 to ship a text from Novato to San Francisco, costs $7 to ship it to San Jose, and costs $10 to ship it to Sacramento. It costs $15 to ship a text from Lodi to San Francisco, costs $8 to ship it from Lodi to San Jose, and costs $4 to ship it from Lodi to Sacramento.
There is a limit of 300 copies be send for each route. What if there are only 600 copies of the text from both Novato and Lodi. How would the model be changed? Will there be unhappy customers (why would they be unhappy)?