Answer Happy

b) The linear programming problem developed in part a of this question can be solved using the simplex method. Can you design another algorithm to solve this problem. State your assumptions and details of steps in your algorithm. Hint: The simplex method is composed of the following steps: 0. Initialization 1. Optimality Test 2. Iteration 2.a. Selecting entering variable (most negative reduced cost coefficient for nonbasic var.) 2.b. Selecting a leaving variable (minimum ratio test) 2.c. Updating the basis

Question 1 (20 points) A retail chain has 3 distribution centers to serve 4 regions to meet the demand. The transportation cost between the distribution centers and the regions is given in the following table. Unit Transportation Cost for Regions 1 2 3 4 A 12 15 13 11 Distribution B 8 16 12 10 Center C 9 17 11 13 The demand is expected to be 100, 90, 110, and 120 units in regions 1, 2, 3, and 4 respectively. The distribution centers 1, 2, and 3 have shipping capacity of 150, 140, 130 units respectively. a) Formulate a linear programming model to satisfy demand in regions and capacity constraints of distribution centers at minimum transportation cost.