A company can produce as many as 35 units/month. The demands of its primary customers must be met on time each month; if it wishes, the company may also sell units to secondary customers each month. A $1/unit holding cost is assessed against each month’s ending inventory. The relevant data are shown in Table.
Available for
Month
Production Cost/Unit ($)
Primary Demand
Secondary Demand
Sales Price/Unit ($)
1
13
20
15
2
12
14
3
25
16
Formulate a balanced transportation problem that can be used to maximize profits earned during the next three months.
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