Question

Rent'R Cars is a multisite car rental company in the city. It is trying out a new "return the car to the location most convenient for you" policy to improve customer service. But this means that the company has to constantly move cars around the city to maintain required levels of vehicle availability. The supply and demand for economy cars, and the total cost of moving these vehicles between sites, are shown below.

From\To		D		E		F		G		Supply
A			$10		$4		$8		$10	75
B			12		5		7		14	85
C			11		7		11		10	95
Demand			45		55		65		90	255\255

a. Find the solution that minimizes moving costs using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.)

From/To	D	E	F	G	Supply
Candidate solution
A
B
C
Total shipped
Cost
A
B
C
Total costs					$

Answer 1

In the given cars rent transportation problem Total supply of cars = 255 and Total demand for cars = 255 so the given problem is balanced trasportation problem

The optimum solution is given below

The number of cars from sourse to destination is given in the following transportation table

Sourse \ Destination	D	E	F	G	supply
A	40	35	0	0	75
B	0	20	65	0	85
C	5	0	0	90	95
Demand	45	55	65	90	Total supply= Total demand =255

The cost associated with transportation of cars from source to destination is given in the following table

Sourse \ destination	D	E	F	G
A	10	4	0	0
B	0	5	7	0
C	11	0	0	10

Total minimum transportation cost from source to destination is given as

10x40+4x35+5x20+7x65+11x5+10x90 = 2070