Quantitative Techniques: Theory and Problems

TRANSPORTATION PROBLEM

Problem 1.85

A company is to subcontract work on four assemblies. The five subcontractors have agreed to submit a bid price on each assembly type and a limit on the total number of assemblies (if any combination) for which they are willing to contract. These bids, the contract times, and time requirements for assemblies are given in the following matrix.

Formulate the LP model.

Solution

Let x₁₁ be Assembly 1 to Subcontractor A, x₁₂ be assembly to Subcontractor B and so on.

It is a minimization problem since the objective ...