As well, it maintains 4 storage locations where it ships product for subsequent delivery to customers. It can also ship cement directly from its plant or point of purchase. It has many customs at various locations. This is a large problem and its solution can make the difference between success and failure of the company. To solve this problem, we need to formulate it as a linear program.
Some notation is needed.
The real business issues that would be included in a full linear programming implementation of this problem include multiple time periods, delivery timing, costs that change with volume, handling situations when all customer demand cannot be met. Existing software would quickly find the optimal solution. The model should be complex enough to include all of the true details of the situation. This model optimized the operation of each unit and the use of storage facilities to meet demand at least cost. Similar to the above but more than one location was involved and distribution to the customers was included.