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A PRODUCTION AND INVENTORY APPLICATION 335

a. Use the MODI method to determine whether this solution provides the minimum
transportation cost. If it is not the minimum cost solution, find that solution. If it is the
minimum cost solution, what is the total transportation cost?
b. Does an alternative optimal solution exist? Explain. If so, find the alternative optimal
solution. What is the total transportation cost associated with this solution?
15 Consider the following minimum cost transportation problem.

Destination
Los San San
Origin Angeles Francisco Diego Supply
4 10 6
San Jose 100

8 16 6
Las Vegas 300

14 18 10
Tucson 300

Demand 200 300 200 700

a. Use the minimum cost method to find an initial feasible solution.
b. Use the transportation Simplex method to find an optimal solution.
c. How would the optimal solution change if you must ship 100 units on the Tucson–San
Diego route?
d. Because of road construction, the Las Vegas–San Diego route is now unacceptable.
Resolve the initial problem.
16 Consider the following minimum cost transportation problem.

Destination
Origin D 1 D 2 D 3 Supply
6 8 8
O 1 250

18 12 14
O 2 150

8 12 10

O 3 100

Demand 150 200 150

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