The demand for a perishable item over the next four months is400, 300, 420, and 380 tons, respectively. The supply capacitiesfor the same months are 500,600, 200, and 300 tons The purchaseprice per ton varies from month to month and is estimated at $100,$140, $120, and $150, respectively. Because the item is perishable,a current month's supply must be consumed within 3 months (startingwith current month). The storage cost per ton per month is $3. Thenature of the item does not allow back-ordering. Solve the problemas a transportation model, and determine the optimum deliveryschedule for the item over the next 4 months.
A) Formulate the problem as a transportation problem byhand
B) Using the initial solution with the lowest cost usethe method of multiplier to fond the optimal solution