70 70 Amsterdam Berlin -10 30 20 2 Paris 20 20 20 -10 7 Madrid 25 16 50 40 55 50 30 30 30 3 Munich 50 30 5 Milan 30 -50 50 -20 20 Barcelona
70 70 Amsterdam Berlin -10 30 20 2 Paris 20 20 20 -10 7 Madrid 25 16 50 40 55 50 30 30 30 3 Munich 50 30 5 Milan 30 -50 50 -20 20 Barcelona
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question
In May 2023, several empty containers, totaling 20 containers, need to be reallocated among terminals in Amsterdam, Berlin, Munich, Paris, Milan, Barcelona, and Madrid. The available or requested number of empty containers at various terminals is reported, along with the transportation costs (in euros per container) as seen in Figure 1.
Determine how to solve the problem with the goal of minimizing transportation costs.
Note: "+" denotes supply nodes, and "-" denotes demand nodes.
Arrows depict the flow of material and costs.
Please provide the mathematical explanation used to solve the question above.
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