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A manufacturing company has two factories F1 and F2 producing a certain commodity that is required at three retail outlets M1, M2 and M3. Once produced, the commodity is stored at one of the ve company warehouses, W1;W2;W3;W4;W5 from where it is distributed to thevarious retail outlets. It is not feasible to move the commodity from a warehouse to a factory, nor is it feasible to move the commodity from a retail outlet to a warehouse. The tables below give the maximum weekly amount of the commodity that can be moved from factory Fi to warehouse Wj and from warehouse Wj to retail outlet Mk. Maximum weekly movement of the commodity between warehouses is indicated in the network shown below. Each factory F1 and F2 has a weekly production capacity of 60 units. Using an appropriate network, determine the maximum amount of the commodity that can be supplied to the markets.
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HOW TO OBTAIN THE LASPEYRES QUANTITY INDEX AND THE FORMULA
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