Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 22

Computers Unlimited in Problem has determined that when it is unable to meet the demand for microcomputers at the universities it supplies, the universities tend to purchase microcomputers elsewhere in the future. Thus, the firm has estimated a shortage cost for each microcomputer demanded but not supplied that reflects the loss of future sales and goodwill. These costs for each university are as follows:
Solve Problem with these shortage costs included. Compute the total transportation cost and the total shortage cost.
Problem
Computers Unlimited sells microcomputers to universities and colleges on the East Coast and ships them from three distribution warehouses. The firm is able to supply the following numbers of microcomputers to the universities by the beginning of the academic year:
Four universities have ordered microcomputers that must be delivered and installed by the beginning of the academic year:
The shipping and installation costs per microcomputer from each distributor to each university are as follows:
Solve this problem by using the computer.