Determine marc optimal shipping quantities

Determine marc optimal shipping quantities Business Management

Marc’s construction firm currently has three projects in progress. Each requires a specific supply of gravel. There are three gravel pits available to provide for Marc’s needs, but shipping cost differ from location to location. The table below summarizes the transportation costs:

Gravel Pit Project 1 Project 2 Project 3 Supply (tons)
A $9 $8 $7 3,000
B $7 $11 $6 4,000
C $4 $3 $12 6,000
Project Demand (tons) 2,500 3,750 4,850
  • Determine Marc’s optimal shipping quantities so as to minimize total transportation costs;
  • Formulate the LP problem.
  • Solve the Primal LP in Solver, print answer and sensitivity report.
  • Formulate the Dual Problem.
  • Solve the Dual in Solver, print answer and sensitivity report.
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