A compressor company has plants in three locations: Cleveland, Chicago, and Boston.
During the past week, the total production of a special compressor unit out of each plant has
been 35, 50, and 40 units respectively. The company wants to ship 44 units to a distribution
center in Dallas, 20 to Atlanta, 31 to San Francisco, and 30 to Philadelphia. The unit
production and distribution costs from each plant to each distribution center are given in the
table below.
Dallas
Atlanta
San Francisco Philadelphia supply
Cleveland
8
6
10
9
35
Chicago
9
12
13
7
50
Boston
14
9
16
5
40
demand
44
20
31
30
125
(a) Use Northwest corner, least cost method, and Vogel method to find initial solutions.
(b) Which methods has lowest objective value?
(c) Use MODI method to find optimal solution? Show your optimal variables?