Part II: Linear Programming Model- Forbelt Corporation has a one-year contract to supply motors for all...

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Part II: Linear Programming Model- Forbelt Corporation has aone-year contract to supply motors for all refrigerators producedby the Ice Age Corporation. Ice Age manufacturers the refrigeratorsat four locations around the country: Boston, Dallas, Los Angeles,and St. Paul. Plans call for the following number (in thousands) ofrefrigerators to be produced at each location: Boston 50 Dallas 70Los Angeles 60 St. Paul 80 Forbelt’s three plants ae capable ofproducing the motors. The plans and production capacities (inthousands) are as follows: Denver 100 Atlanta 100 Chicago 150Because of varying production and transportation costs, the profitthat Forbelt earns on each lot of 1000 units depends on which plantproduces the lot and which destination it was shipped to. Ship to:Produced At: Boston, Dallas, Los Angeles ,St. Paul Denver 7 , 11 .8 13 Atlanta 20 17 . 12 10 Chicago 8 18 13 16 With profitmaximization as a criterion, Forbelt’s management wants todetermine how many motors should be produced at each plant and howmany motors should be shipped form each plant to each destination.Find the optimal solution.

* I have the solution to the above problem, I need help withcalculating profit (ex, when distribution changes)

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Below is the Step by Step Profit Maximization table as per VAM method As the DEmand and Supply is not equal this is unbalanced so we introduce a Dummy Demand City to balance it as shown below Estimates of the profit per unit Shipped to Produced At Boston Dallas Los Angeles St Paul Dummy Supply Capacity Denver 7 11 8 13 0 100 Atlanta 20 17 12 10 0 100 Chicago 8 18 13 16 0 150 Demand 50 70 60 80 90 350 As this is a Profit Maximization requirement we convert it into a relative loss Matrix    See Answer
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