Problem 2: The Medequip Company produces precision medical diagnostic equipment at two factories. Three medical centers have placed orders for this month's production output. The table below shows what the cost would be for shipping each unit from each factory to each of these customers. Also shown are the number of units that will be produced at each factory and the number of units ordered by each customer. To Unit Shipping Cost From Customer 1 Customer 2 Customer 3 Output Factory 1 $600 $800 $700 400 units Factory 2 $400 $900 $600 500 units Order size 300 units 200 units 400 units A decision now needs to be made about the shipping plan for how many units to ship from each factory to each customer. Formulate a linear programming model for this problem.
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Step 1: Define the Decision Variables Let's denote the number of units shipped from each factory to each customer with the following variables: - \(x_{11}\): Units shipped from Factory 1 to Customer 1 - \(x_{12}\): Units shipped from Factory 1 to Customer 2 - Show more…
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