Five sources exist for the civet cat coffee favored by true coffee connoisseurs. The four processing centers for these coffee beans are scattered about the country, each with a different level of demand
The five sources all face different cost structures for transporting their beans, the prices in the table reflect a dollar cost per 50 pound bag of coffee beans. The total amounts supplied by each source and demanded by each destination are also shown in the table, and as luck would have it, the total supply equals the total demand. What is the optimal shipping scheme such that the total transportation cost is minimized?
Destination 1 Destination 2 Destination 3 Destination 4 Supply
Source 1 $5 $7 $2 $9 400
Source 2 $8 $6 $3 $4 400
Source 3 $11 $15 $18 $11 300
Source 4 $9 $6 $4 $3 200
Source 5 $7 $9 $11 $8 200
Demand 500 350 250 400 1500
The optimal tableau is:
Destination 1 Destination 2 Destination 3 Destination 4
Source 1 150 0 250 0
Source 2 0 350 0 50
Source 3 150 0 0 150
Source 4 0 0 0 200
Source 5 200 0 0 0
The total cost of this solution is $8850
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