Paper 4, Section II, H
A company must ship coal from four mines, labelled , to supply three factories, labelled . The per unit transport cost, the outputs of the mines, and the requirements of the factories are given below.
\begin{tabular}{c|c|c|c|c|c} & & & & & \ \hline & 12 & 3 & 5 & 2 & 34 \ \hline & 4 & 11 & 2 & 6 & 21 \ \hline & 3 & 9 & 7 & 4 & 23 \ \hline & 20 & 32 & 15 & 11 & \end{tabular}
For instance, mine can produce 32 units of coal, factory a requires 34 units of coal, and it costs 3 units of money to ship one unit of coal from to . What is the minimal cost of transporting coal from the mines to the factories?
Now suppose increased efficiency allows factory to reduce its requirement to units of coal, and as a consequence, mine reduces its output to units. By how much does the transport cost decrease?