The Build-Em-Fast Company has agreed to supply its best customer with three widgits
during each of the next 3 weeks, even though producing them will require some
overtime work. The relevant production data are as follows:
The cost per unit produced with overtime for each week is $100 more than for regular
time. The cost of storage is $50 per unit for each week it is stored. There is already an
inventory of two widgets on hand currently, but the company does not want to retain
any widgets in inventory after the 3 weeks.
Management wants to know how many units should be produced in each week to
minimize the total cost of meeting the delivery schedule.
Formulate this problem as a transportation problem by constructing the appropriate
parameter table.