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328   CHAPTER 7 TRANSPORTATION, ASSIGNMENT AND TRANSSHIPMENT PROBLEMS


                                 1 A company imports goods at two ports: Lisbon and Le Havre. Shipments of one of its
                                    products are made to customers in Paris, Berlin, London and Milan. For the next
                                    planning period, the supplies at each port, customer demands and the shipping costs
                                    (E) per case from each port to each customer are as follows:


                                                                Customers

                                  Port           Paris      Berlin      London       Milan      Port Supply
                                  Lisbon            2          6            6           2          5 000
                                  Le Havre          1          2            5           7          3 000
                                  Demand         1 400      3 200        2 000       1 400.



                                    a. Develop a network model of the distribution system for this problem.
                                    b. Solve the problem to determine the minimum cost shipping schedule.
                                 2 Consider the following network representation of a transportation problem:




                                                                             Des Moines  25
                                                              14
                                                   Jefferson
                                             30               9
                                                     City
                                                              7
                                                                               Kansas    15
                                                               8                City
                                                              10
                                             20     Omaha     5



                                                                               St. Louis  10





                                           Supplies                                   Demands




                                    The supplies, demands and transportation costs per unit are shown on the
                                    network.
                                    a. Develop a linear programming model for this problem; be sure to define the variables in
                                      your model.
                                    b. Solve the linear programme to determine the optimal solution.












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