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A company can manufacture 2 units of a product per day at its Ottawa factory. Two customers, one in Vancouver and the other in Halifax, each require 1 unit of the product on an emergency basis. The products can be flown from the factory directly to the customer. But it might be cheaper to first fly to a hub, Montreal or Toronto, and then to the customer. The air freight costs per unit are shown in the table below. A blank cell means that we can assume that the route will not be used.
Unit air freight costs:
From/To Montreal Toronto Vancouver HalifaxOttawa $876 $226 $576 $336Montreal $540 $335Toronto $325 $233
Formulate this problem as a transhipment model and use Solver's Simplex LP to determine which routes to use in order to minimize the total air freight cost subject to meeting the demands and not exceeding the capacity.
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