Paper 3, Section II, H

Optimization
Part IB, 2009

Four factories supply stuff to four shops. The production capacities of the factories are 7,12,87,12,8 and 9 units per week, and the requirements of the shops are 8 units per week each. If the costs of transporting a unit of stuff from factory ii to shop jj is the (i,j)(i, j) th element in the matrix

(610354861234925726)\left(\begin{array}{cccc} 6 & 10 & 3 & 5 \\ 4 & 8 & 6 & 12 \\ 3 & 4 & 9 & 2 \\ 5 & 7 & 2 & 6 \end{array}\right)

find a minimal-cost allocation of the outputs of the factories to the shops.

Suppose that the cost of producing one unit of stuff varies across the factories, being 3,2,4,53,2,4,5 respectively. Explain how you would modify the original problem to minimise the total cost of production and of transportation, and find an optimal solution for the modified problem.