The problem given to us is one of a Proﬁt maximization problem. The question provides details of 2 sources with their supply to 4 destinations & their respective demands. It is an unbalancedtransportation problem with demand exceeding the supply. So it is compensated with a dummy supply origin with costs of transportation in the row accounted for as 0. It is the reverse of a nor-mal transportation problem which involves minimization of cost.However, to solve the same we ﬁrst need to convert the given problem into a minimization one by subtracting all the proﬁt ﬁgures from the highest given ﬁgure & carry on as a normal one
Let,X11 denote the number of units shipped from origin 1 (Clifton Springs) to destination 1 (D1),X12 denote the number of units shipped from origin 1 (Clifton Springs) to destination 2 (D2),and so on.There are 2 (m) origins and 4 (n) destinations, hence there are 2*4 (m*n) = 8 decision variables.The objective of the transportation problem is to maximize the total proﬁt, the proﬁt expressions would be as follows:Proﬁt for units shipped from Clifton Springs = 32 X11 + 34 X12 + 32 X13 + 40 X14Proﬁt for units shipped from Danville = 34 X21 + 30 X22 + 28 X23 + 38 X24 With 2 plants, Klein Chemicals Inc. has two supply constraints.X11 + X12 + X13 + X14 <= 5000 Clifton Springs supply X21 + X22 + X23 + X24 <= 3000 Danville supply With 4 distribution centers, Klein Chemicals Inc. has four demand constraints.X11 + X21 = 2000 D1 demandX12 + X22 = 5000 D2 demandX13 + X23 = 3000 D3 demandX14 + X24 = 2000 D4 demandCombining the objective function and constraints into one model provides a 8-variable, 6-constraint linear programming formulation of the Klein Chemicals Inc Transportation problem.
Applied Quantitative Analysis
Applied Quantitative Analysis- Transportation maximization problem