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In the earlier SHIPPING.XLS network problem, the cost to transport your product from a supply point to a demand point was fixed. However, in some network problems, the costs vary with the amount transported along each arc. If you've ever driven to or from a major city during rush hour, you've experienced this phenomenon. As the number of cars on the road increases, the cost, in terms of time required, of getting from point A to point B increases. In many cases, the cost does not increase linearly. For example, doubling the traffic on a lightly traveled road may not double the travel time, but doubling the traffic again may effectively grind the flow of vehicles nearly to a halt.
Objective of Optimization:
The objective is to ship all the uniforms to the Intake Centers at minimum cost, while satisfying demand at each center.