A Company has 2 production facilities S₁ and S₂ with production capacity of 100 and 110 units per week of a product, respectively. These units are to be shipped to 3 warehouses D₁, D₂ and D₃ with requirement of 80, 70 and 60 units per week, respectively. The transportation costs (in $) per unit between factories to warehouses are given in the table below:
| Sources \ Destination |
D₁ |
D₂ |
D₃ |
Supply |
| S₁ |
1 |
2 |
3 |
100 |
| S₂ |
4 |
1 |
5 |
110 |
| Demand |
80 |
70 |
60 |
|
Find initial basic feasible solution to the above transportation problem using North West Corner Method, then optimize the solution.