Distribution and Network Models
Sunlight Corporation has a one-year contract to supply motors for all refrigerators produced by the Ice Age Corporation. Sunlight has three plants capable of producing motors – Denver, Atlanta, and Chicago. Ice Age calls for a specific number of refrigerators to be produced at each of four plants - Boston, Dallas, Los Angeles, and St. Paul. Because of varying production and transportation costs, the profit that Sunlight earns on each lot of 1000 units depends on which plant produced the lot, and which destination it was shipped to. Values on the arcs give the accounting department estimates of the profit per unit.
Formulate the linear programming formulation of this problem with the demand at Boston adjusted to 100 instead of 50 and the demand at Los Angeles adjusted to 120 instead of 60. Clearly define the decisions variables, objective function, constraints, and non-negativity statement.