= Solution
Let $x_{ij}\geq0$ be shipments, with column sums eight and row sums at most the four capacities. Total demand is $32$, below total capacity $36$, so unused capacity is allowed. This is a <transportation problem> with capacity inequalities; equivalently add a dummy shop demanding four units with zero shipping cost.
Using the original PDF's cost $c_{12}=10$, take the <feasible solution>
$$
\boxed{X=\begin{pmatrix}0&0&0&7\\8&0&0&0\\0&7&0&1\\0&1&8&0\end{pmatrix}.}
$$
Its row totals are $(7,8,8,9)$ and all column totals are eight. Four units of capacity remain unused at the second factory. Its shipping cost is $35+32+28+2+7+16=\boxed{120}$.
To prove that the cost is a <global minimum>, use the <transportation dual certificate with capacity inequalities>. If row potentials satisfy $u_i\leq0$ and $u_i+v_j\leq c_{ij}$, every <feasible solution> satisfies
$$
\sum_{i,j}c_{ij}x_{ij}\geq\sum_i u_i\sum_jx_{ij}+\sum_jv_j\sum_ix_{ij}\geq\sum_i u_i s_i+8\sum_jv_j,
$$
where $s=(7,12,8,9)$. The second inequality uses the sign of $u_i$: multiplying a capacity upper bound by a nonpositive number reverses it. Choose $u=(0,0,-3,0)$ and $v=(4,7,2,5)$. The <reduced costs> are
$$
(c_{ij}-u_i-v_j)=\begin{pmatrix}2&3&1&0\\0&1&4&7\\2&0&10&0\\1&0&0&1\end{pmatrix},
$$
so every entry is nonnegative. The lower bound is $-24+8(4+7+2+5)=120$, equal to the displayed shipping cost. \b[The minimum shipping cost is $120$.]
For the <production costs in a transportation problem>, add the production cost of each factory to every real shipment from that factory. Unused capacity incurs no production cost, so the dummy-shop costs remain zero. The resulting real-shop cost matrix is
$$
C'=\begin{pmatrix}9&13&6&8\\6&10&8&14\\7&8&13&6\\10&12&7&11\end{pmatrix}.
$$
A <feasible solution> is
$$
\boxed{X'=\begin{pmatrix}0&0&3&4\\8&4&0&0\\0&4&0&4\\0&0&5&0\end{pmatrix}.}
$$
Its row totals are $(7,12,8,5)$ and column totals remain eight, leaving four units unused at the fourth factory. Its combined cost is $18+32+48+40+32+24+35=229$.
For a matching <transportation dual certificate with capacity inequalities>, take $u'=(-1,-1,-3,0)$ and $v'=(7,11,7,9)$. Their <reduced costs> are
$$
(C'_{ij}-u'_i-v'_j)=\begin{pmatrix}3&3&0&0\\0&0&2&6\\3&0&9&0\\3&1&0&2\end{pmatrix},
$$
all nonnegative. The lower bound is $-7-12-24+8(7+11+7+9)=229$. Thus \b[the minimum combined production and shipping cost is $229$], and the second allocation attains it.
Back to article page