PROBLEM 2

Table I

Projects
Warehouse A B C Supply
200 300 200

1 1,500
1,500    
300 200 100

2 2,000
500 1,500  
300 200 200

3 1,000
    1,000
Demand 2,000 1,500 1,000 4,500

Transportation Cost:

1A: 1,500(200) = 300,000

2A: 500(300)    = 150,000

2B: 1,500(200) = 300,000

3C: 1,000(200) = 200,000

Total                    950,000

Value from the occupied cell:

1A: V1+W1=200;   0+W1=200;   W1=200

2A: V2+W1=300;   V2+200=300;   V2=100

2B: V2+W2=200;   100+W2=200;   W2=100

3C: V3+W3=200;    0+W3=200;      W3=200

Unoccupied cell:

1B = 300-0-100 = 200

1C = 200-0-200 = 0
2C = 100-100-200 =  -200

3A = 300-0-200 = 100

3B = 200-0-100 = 100

Table II

Projects
Warehouse A B C Supply
200 300 200

1 1,500
1,500    
300 200 100

2 2,000
500 500 1,000 
300 200 200

3 1,000
   1,000
Demand 2,000 1,500 1,000 4,500

Transportation Cost:

1A: 1,500(200) = 300,000

2A: 500(300)    = 150,000

2B: 500(200) = 100,000

2C: 1,000(100) = 100,000

3B: 1,000(200) = 200,000

Total                    850,000

Value from the occupied cell:

1A: V1+W1=200;   0+W1=200;   W1=200

2A: V2+W1=300;   V2+200=300;  V2=100

2B: V2+W2=200;   100+W2=200;   W2=100

2C: V2+W3=100; 100+W3=100; W3=0

3B: V3+W2=200;    0+100=200;      W3=100

Unoccupied cell:

1B = 300-0-100 = 200

1C = 200-0-0 = 200

3A = 300-0-200 = 100

3C = 200-0-0 = 200

There are no negative evaluations. Therefore it is not possible to reduce the total cost of delivery.