3. The table below shows the cost, in pounds, of transporting one unit of stock from each of four supply points, \(\mathrm { A } , \mathrm { B } , \mathrm { C }\) and D , to four sales points, \(\mathrm { P } , \mathrm { Q } , \mathrm { R }\) and S . It also shows the number of units held at each supply point and the number of units required at each sales point.
A minimum cost solution is required.
| P | Q | R | S | Supply |
| A | 18 | 19 | 17 | 13 | 28 |
| B | 16 | 15 | 14 | 19 | 43 |
| C | 21 | 17 | 22 | 23 | 29 |
| D | 16 | 20 | 19 | 21 | 36 |
| Demand | 25 | 41 | 40 | 30 | |
- Use the north-west corner method to obtain an initial solution.
- Taking AS as the entering cell, use the stepping-stone method to find an improved solution. Make your method clear.
- Perform one further iteration of the stepping-stone method to obtain an improved solution. You must make your method clear by showing the route and stating the
- shadow costs
- improvement indices
- entering cell and exiting cell
- State the cost of the solution found in (c).
- Determine whether the solution obtained in (c) is optimal, giving a reason for your answer.