Mathematics for Management Science Notes 05

Exercise 4:
The Bavarian Motor Company (BMC) manufactures expensive luxury cars in Hamburg,
Germany, and exports cars to sell in the United States. The exported cars are shipped from
Hamburg to ports in Newark, New Jersey, and Jacksonville, Florida. From these ports, the
cars are transported by rail or truck to distributors located in Boston, Columbus, Atlanta,
Richmond, and Mobile.
1. There are 200 cars in Newark and 300 in Jacksonville.
2. The numbers of cars needed in Boston, Columbus, Richmond, Atlanta, and Mobile are
100, 60, 80, 170, and 70, respectively.
3. Per car shipping costs are as follows (see the graph for numbering):
From 1 to 2 $30 From 5 to 6 $35
From 1 to 4 $40 From 6 to 5 $25
From 2 to 3 $50 From 7 to 4 $50
From 3 to 5 $35 From 7 to 5 $45
From 5 to 3 $40 From 7 to 6 $50
From 5 to 4 $30
BMC would like to determine the least costly way of transporting the cars from the ports
to the locations where they are needed.
• Complete the following transshipment network by filling in the supplies and demands (with
appropriate signs) and the unit costs along each link.
2: Boston
3: Columbus 1: Newark
5: Atlanta 4: Richmond
6: Mobile 7: Jacksonville
page 16 of 19