Transport Planning

A firm must transport machines from production plants A, B and C to warehouses X, Y and Z. Five machines are required in X, 4 in Y and 3 in Z, whereas 8 machines are available in A, 5 in B and 3 in C. The transport costs (in euros) between sites are provided in the table below.

Plant/Warehouse

X

Y

Z

A

50

60

30

B

60

40

20

C

40

70

30

a) Formulate an integer linear programming model that minimizes transport costs.

b) Assume that the cost of transporting a machine from plant B increases by €10 for all the machines as of the third one; that is, the 4th, the 5th, etc. Reformulate the model in Section a) by considering this assumption.