Case 1:

The production manager wants a schedule developed for the number of engines
to be produced in each of the four months so that the total of the production
and storage costs will be minimized.

Solution:
- As we can see, the formulation of this problem is a variant of a transportation
problem. The sources of the jet engines are their production on regular time
(RT) and on overtime (OT) in each of the four months. Their supplies are
obtained from the third and fourth columns of the table. The destinations for
these engines are their installation in each of the four months and their demands
are given in the second column of the table.
According the given data, we have:

With the storage cost:

- Our group choose the data for unit cost of production as below:

    * Using Solver to minimize the total of the production and storage

costs:
Step 1: Enter the given data and formula data
As engines must be stored until the scheduled installation at a storage cost of
$15,000 per month for each engine. So, we calculate:
Unit Cost of Production ($Million) = Production Cost + Storage Cost * Number
of months

Similar for the remaining months and we get the result:

A spreadsheet formulation of the Northern Airplane Co. problem as a variant of

a transportation problem, including the objective cell Total Cost and the other
output cells Unit Cost, Produced, and Installed, as well as these specifications
which need to be set up the model. The changing cells Units Produced display
the optimal production schedule obtained by using Solver of Excel.
Step 2: Open Solver

First, apply the given data:

The Total Cost (Millions) = SumProduct(UnitsProduced,UnitsCost)

Secondly, open Solver and apply:

Set Objective: $J$32 (Total Costs)
To: Min (Minimize Total Cost) 
By Changing Variable Cells: $D$21:$G$28 (Units Produced)
Subject to the Constraints:
$D$23:$G$28 = 0
$D$29:$G$29 = $D$31:$G$31
$E$25:$E$28 = 0
$F$27:$F$28 = 0
$H$21:$H$28 <= $J$21:$J$28
And Solving method: Simplex LP
      

The Solver Parameters box includes constraints that the number installed must
be zero in each of these cases. The unit costs given in this table (in units of
$Million) are obtained by combining the unit cost of production from the fifth or
sixth column of the Table with any storage costs ($0.015 million per unit per
month stored). Because the quantities in Max Production represent the
maximum amounts that can be produced, they are preceded by ≤ signs. The
corresponding supply constraints, Produced ≤ MaxProduction , are included in
the Solver Parameters box along with the usual demand constraints.
Step 3: We have the results output
Total Cost = $80.2 Millions
The first month produce 20 regular me
The second month produce 5 regular time
The third month produce 25 regular time and 5 overtime
The last month produces 5 regular time and 10 overtime
A normal person use hand scheduler would have difficulty in finding this
schedule. However, Solver has no difficulty in balancing all the factors involved
to reduce the total cost to an absolute minimum, which turns out to be $80.2
Million (as shown in the objective cell Total Cost) in this case.

         * Using QM to minimize the total of the production and storage

costs:
Step 1: In the main window of QM, click Module in the menu bar, select
Transportation, then click File → New

Step 2: From the case, we have the data:

Step 3: SOLVE 
After using QM for Window, we have the same result as Excel Solver with TC=
$ Million.