Formulate balanced transportation problem to minimize sum

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Reference no: EM1368420

1 - A company supplies goods to three customers, who each require 30 units. The company has two warehouses. Warehouse 1 has 40 units available and warehouse 2 has 30 units available. The cost shipping 1 unit from warehouse to customers are shown in table below. There is a penalty for each unmet customer unit of demand: with customer 1 a penalty cost of 490 is incurred; with customer 2, $80; and with customer 3, $110. Formulate a balanced transportation problem to minimize the sum of shortage and shipping cost (only formulation - do not solve).

To
From Customer 1 Customer 2 Customer 3

Warehouse 1 $15 $35 $25
Warehouse 2 $10 $50 $40

Reference no: EM1368420

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