1. True/False: For each of the transportation problem, state whether it is true or false.
a. Transportation problems can only be feasible if the supply is at most equal to the demand.
b. Network is a graphical representation of the transportation problem using the nodes and
arcs.
c. Dummy origin is added when the supply is more than the demand.
d. Transportation problems can only have minimization as objective.
2. Valence Pharmaceuticals has three manufacturing facilities in the US where they produce an anticancer drug. The drug is shipped from the plants to four distribution centers. Plants 1, 2, and 3
produce 12, 17, and 11 shipments per month, respectively. The distribution centers, A, B, C, and D,
each needs to receive 10 shipments per month. The distance (in miles) from each plant to each
distribution center is shown in the following table
Distribution Center
Plant A B C D
1 800 1300 400 700
2 1100 1400 600 1000
3 600 1200 800 900
The freight cost for each shipment is $1.00 per mile.
(a) Draw a network diagram representing the problem.
(b) Formulate a linear optimization model that can be used to determine the shipping plan that will
minimize total distribution costs. Make sure to follow the mathematical formulation steps clearly
(Remember that to formulate a model means to write it out mathematically. Do not set up your
model in Excel.)
(c) Is the capacity of the plants equal to the demand at the distribution centers?
3. Michael would like to drink 3 pints of home-brewed craft beer today and an additional 4 pints
tomorrow. There are two neighbors on his block who brew beer. Louise is able to sell up to 5 pints
of her beer. She’s charging $3.00 a pint today and will charge $2.70 a pint tomorrow. Serge is able
to sell up to 4 pints of his beer, at $2.90 a pint today and at $2.80 a pint tomorrow.

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