A company is having transhipment problems where they need to ship all the goods from the plants to all of the destinations at the minimum possible transportation cost.

 

The plantations, which are the origin of the network, have the following details:

Area	Production 
Denver	600
Atlanta	400
Houston	500
 

The Retail Outlets, which are the destination of the network, have the following details: 

Retail Outlets	Demand
Detriot	                     300
Miami	                     250
Dallas	                     450
New Orleans	                     500
 

Transportation costs from Plants to Warehouses (intermediate destination)

Plant/Warehouse	Kansas City	Lousville
Denver	3	2
Atlanta	2	1
Houston	4	3
 

Transportation costs from Warehouses to Retail Outlets

Detriot	Miami	Dallas	New Orleans
Kansas City	2	6	3	5
Lousville	4	4	6	5
 


What is the minimum cost that can be achieved for this transhipment problem? 
[ Select ]



What will be the effect on the total cost of the optimal solution if Denver can also directly ship to all the Retail Outlets at $6 cost? 
[ Select ]

What would happen if there is a maximum capacity of 350 units on all flows? 
[ Select ]

What is the total netflow of the network? 
[ Select ]

In a situation where there is a maximum capacity of 350 units on all flows and all plants can directly ship to all retail outlets at $5, which of the following statements is true? 
[ Select ]


Statement 1: The total cost of the optimal solution would decrease.
Statement 2: There would be no flows in Lousville.
Statement 3: To achieve the optimal solution, all plants will have to ship their products directly to the retail outlets.