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Eastern gobi enterprises produces fine glass and china at its 3 large factories.

ID: 3387316 • Letter: E

Question

Eastern gobi enterprises produces fine glass and china at its 3 large factories. Special sand required as an ingredient in all EGE products can be collected at three sites. Because of hazardous road conditions, some routes can only handle small trucks. which increases transportation costs dramatically. However,sand from one site can be transferred to a truck departing from another site and pass through one of the factories en route to another. However, shipping sand from a factory to a collection site is not allowed.

The monthly demands at the three factories are: Glass 170 tons of sand; China 240 tons; and Crystal 90 tons. The three sand mining sites have limited monthly supplies due to collection difficulties. Pit A can provide 130 tons; Pit B 210 tons; and Pit c 160 tons Transportations costs are:

From Pit              To factory          $ton        to other        $ton

A                   Glass                          9               b                3

                      China                        22               c                 8

                      Crystal                      12

B                    Glass                          4              a                    12

                      China                        6                 c                   7

                      Crystal                      11

C                    Glass                        8               a                9

                      China                        4                b                 4

                      Crystal                      5

From Factory                    To factory               $ton  

Glass                            China                            7

                                    Crystal                            2

China                            glass                             3

                                      crystal                           4              

crystal                            glass                            3

                                        china                            6

                      

Explanation / Answer

The transportation cost :

The Transhipment process

Iteration:

The transhipment cost :

Pit Factory Glass China Crystal Supply A 9 22 12 130 B 4 6 11 210 C 8 4 5 160 Demand 170 240 90 500
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