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QUESTION
A hospital needs to purchase 3 gallons of a perishable medicine for use during the currentmonth and 4 gallons for use during the next month. Because the medicine is perishable, itcan only be used during the month of purchase. Two companies (Daisy and Laroach) sellthe medicine. The medicine is in short supply. Thus, during the next two months, thehospital is limited to buying at most 5 gallons from each company. The companies chargethe prices shown in Table 1. Formulate a balanced transportation model to minimize thecost of purchasing the needed medicine.Table 1Next Month’s Priceper Gallon ($)720750a. Use the northwest corner method to find a bfs.b. Use the Vogel’s method to find a bfs.c. Solve LP using the transportation simplex. (Use part (a) or (b)).d. Use software to verify your answer.
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