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RVW (Restored Volkswagens) buys 15 used VW's at each of two car auctions each week held at different locations. It then

Posted: Thu Apr 28, 2022 2:39 pm
by answerhappygod
RVW (Restored Volkswagens) buys 15 used VW's at each of two car
auctions each week held at
different locations. It then transports the cars to repair shops it
contracts with. When they are restored to
RVW's specifications, RVW sells 10 each to three different used car
lots. There are various costs
associated with the average purchase and transportation prices from
each auction to each repair shop.
Also there are transportation costs from the repair shops to the
used car lots. RVW is concerned with
minimizing its total cost given the costs in the table below.
Repair Shops Used Car Lots
S1
S2 L1 L2 L3
Auction 1 550 500 S1 250 300 500
Auction 2 600 450 S2 350 650 450
Network representation:
Now,
a. Formulate this problem as a transshipment linear programming
model.
b. Solve the problem to determine the optimal shipping plan.