The Hyundai dealer at Muscat needs to decide on how to ship new automobiles from two ports (Sohar an

The Hyundai dealer at Muscat needs to decide on how to ship new automobiles from two ports (Sohar and Muscat) to four of their agencies in Muscat, Sohar, Nizwa and Salalah. The following table summarizes the transportation costs incurred per automobile (in OMR).
Muscat Sohar Nizwa Salalah Capacity
Muscat 20 80 60 150 200
Sohar 70 20 50 200 100
Demand 100 80 40 60

a. Formulate a linear program to determine the least costly shipping plan. Clearly define the decision variables and the objective. (2)
b. Use an appropriate software to solve the linear program. Summarize the shipping plan and the total cost. (2)
c. The company is in the process of determining their orders of new automobiles for the coming year. Would you recommend keeping the same numbers arriving at each port (200 for Muscat and 100 for Sohar)? Justify your answer. (1)
d. All four agencies expressed interest in increasing their demand for new cars; however, the company can only accommodate one demand increase, which agency would you recommend? Justify your answer. (1)

 

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