Mathematical methods for economics I

Question

Q3 

Cars must be transported from the 3 factories (F) to 4 warehouses (W). The transportation table is given with the distances between places and the supply of the factories and capacity of the warehouses: 

A) Find an initial feasible transportation plan for this task by any means. How many cells must be occupied by 𝜀 value (to eliminate possible degeneracy)?
b) What is the objective function value in the initial solution?
c) Perform the optimality test. What is the value of the optimality test (=the perspectivity) for F1-
W4 route?
d) Find the optimal solution of the problem and show which warehouse will not be fully occupied in the optimal solution.


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