East Food Company imports food products such as meats, cheese,and pastries to the U.S. from warehouses at ports in Rome, Seville,and Rotterdam. Ships from these ports deliver the products to U.S.ports, i.e. Hampton, Charleston, and Jacksonville, where they arestored in company warehouses before being shipped to distributioncenters in Houston, Kansas City, and Minneapolis. The products arethen distributed to specialty food stores and sold throughcatalogs. The shipping costs ($/1,000 lb.) from the European portsto the U.S. ports and the available supplies (1,000 lb.) at theEuropean ports are provided in the following table: European PortU.S. Ports Supply Hampton Charleston Jacksonville Rome $420 $390$610 55 Seville 510 590 470 78 Rotterdam 450 360 480 37 Thetransportation costs ($/1,000 lb.) from each U.S. ports of thethree distribution centers and the demands (1,000 lb.) at thedistribution centers are as follows: U.S. Ports Distribution CenterHouston Kansas City Minneapolis Hampton 75 63 81 Charleston 125 11095 Jacksonville 68 82 95 Demand 60 45 50
a. [2 Marks] Develop a mathematical model that minimizes totaltransportation costs between the European ports and the warehousesand the distribution center at the U.S.
b. [1 Mark] Solve it using software and show the results. c. [1Mark] What is the minimum total transportation cost?
d. [1 Mark] Discuss the results in the context of theslack/surplus.
QUESTION # 4. Consider Question 1 above. Suppose that duecertain reasons, the available supply from Seville has beendecreased to 50 (in 1,000 lb.). a. [2 Marks] Develop a mathematicalmodel that minimizes total transportation costs between theEuropean ports and the warehouses and the distribution center atthe U.S., considering the decrease in the available supply fromSeville.
b. [1 Mark] Solve it using software and show the results. c. [1Mark] What is the minimum total transportation cost?
d. [1 Mark] Discuss the results in the context of theslack/surplus