Three Plants P1, P2, and P3 of a Gas Corporation

Three plants P1, P2, and P3 of a gas corporation supply gasoline to three of their distributors in the city located at A, B, and C locations. The plants' daily capacities are 4500, 3000, and 5000, gallons respectively, while the distributors' daily requirements are 5500, 2500, and 4200 gallons. The per-gallon transportation costs (in $) are provided in the table below:

Because of a failure of expected supply earlier, the distributors this time have decided to charge a penalty of $0.45, $0.55, and $0.5 per gallon, respectively for the locations A, B, and C to avoid any further delays.
Find an alternative optimal solution for this transportation problem? Hint: Use the procedure described in section 8.7.

Correct Answer:

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First, solve the problem by minimizing t...

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