70 70 Amsterdam Berlin -10 30 20 2 Paris 20 20 20 -10 7 Madrid 25 16 50 40 55 50 30 30 30 3 Munich 50 30 5 Milan 30 -50 50 -20 20 Barcelona

MARKETING 2018
19th Edition
ISBN:9780357033753
Author:Pride
Publisher:Pride
Chapter11: Product Concepts, Branding, And Packaging
Section11.1: Gaga: Not Just A Lady
Problem 1VC
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In May 2023, several empty containers, totaling 20 containers, need to be reallocated among terminals in Amsterdam, Berlin, Munich, Paris, Milan, Barcelona, and Madrid. The available or requested number of empty containers at various terminals is reported, along with the transportation costs (in euros per container) as seen in Figure 1.
Determine how to solve the problem with the goal of minimizing transportation costs.
Note: "+" denotes supply nodes, and "-" denotes demand nodes.
Arrows depict the flow of material and costs.

Please provide the mathematical explanation used to solve the question above.

70
70
Amsterdam
Berlin
-10
30
20
2
Paris
20
20
20
-10
7
Madrid
25
16
50
40
55
50
30
30
30
3
Munich
50
30
5
Milan
30
-50
50
-20
20
Barcelona
Transcribed Image Text:70 70 Amsterdam Berlin -10 30 20 2 Paris 20 20 20 -10 7 Madrid 25 16 50 40 55 50 30 30 30 3 Munich 50 30 5 Milan 30 -50 50 -20 20 Barcelona
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