A company has two factories that produce three different products which are shipped to four customers. Factories allocate specified production capacities for each of the products at their production sites. Production capacities at factories and customers’ demands for the different products are given in the following tables:
The products have approximately the same weight, so the unit transportation costs from the production sites to the customers are the same for all products:
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a) Find the optimal solution for the company and interpret it.
b) Find a percentage contribution of each product in the total transportation costs.
c) Assume that the sum of shipments of all products at each transportation link is limited to 1000 units. Modify the model in a) and find the optimal solution and compare it with solution from a).
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