Minimum-cost shipping solution for transportation problem

Reference no: EM13319834

The table given below provides the shipping costs and supply available at each source. Find the minimum-cost shipping solution for the transportation problem. Provide a table of shipping quantities and the minimum value for the objective function for the following methods:

* The northwest-corner rule

* The intuitive lowest-cost method

What is the difference in costs for the two methods? Which solution do you believe is better?

If the cost per unit from Source 2 to Destination 2 is increased from $3 per unit to $6 per unit, does the solution change? If so, how?

Costs (in $)

Costs (in $) Destination 1 Destination 2 Supply

Source 1 6 10 20

Source 2 8 3 30

Source 3 4 6 15

Source 4 12 11 20

Source 5 7 9 25

Demand 70 40 110\110

Reference no: EM13319834

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