NETWORKS

The road network in a particular city is given in the figure below. The points A through M denote important centers in the city, the links denote road connections between the centers, and the number next to the links denote the length of the road segment represented by the link in kilometres. A milk vending company has 4 bottling plants in locations A, B, C, and D. The capacities of the plants are 2000, 2500, 1500 and 3500 liters/day, respectively. The company needs to send milk to outlets located at E, F, G and H using the road network. The demands at the 4 outlets are 1000, 4000, 2500 and 2000 liters/day, respectively. The milk is supplied in refrigerated trucks, and the truckers charge Re. 1/kg/km travelled in trucks.

NETWORKS

Find a solution to the distribution problem, i.e., how should trucks move from the 4 plants A, B, C and D to the 4 outlets E, F, G, H so that the transportation cost is the minimum?

NETWORKS
ABC Enterprises supply widgets to PQR Incorporated. In a certain region, ABC has 5 warehouses, labelled W1 through W5, and PQR has 6 demand locations, labelled D1 through D6. The cost of transporting a widget from a warehouse to a demand point (in Rs/box), the capacities of the warehouses, and demands at different demand locations (in boxes/month) are given in the table below. What is the monthly transportation cost that ABC incurs to supply the widgets? D1 W1 W2 W3 W4 W5 Demand 19 27 16 24 27 350 D2 20 11 22 30 15 250 D3 15 11 15 25 23 200 D4 14 15 17 15 20 250 D5 30 12 29 29 21 350 D6 30 11 11 24 19 300 Capacity 600 500 700 200 400

NETWORKS
An agency deals with 4 currencies: INR, Euros, GBP and USD. On a particular day, the exchange rates between these currencies were the following: INR INR Euro GBP USD 1.000 55.105 87.840 46.480 Euro 0.018 1.000 1.471 0.781 GBP 0.011 0.680 1.000 0.529 USD 0.022 1.280 1.890 1.000

Does there exist an arbitrage opportunity for the agency?

Min Cost Flow Problem

Transportation Problem
For a balanced network: Total supply = total demand

Transportation Problem
For an unbalanced network : Total demand < total supply

Transportation Problem
For an unbalanced network : Total demand > total supply

Maximum Flow Problem

Shortest Path Problem

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