This is a basic network model considering 2 surplus cities (Seattle and San Francisco) and 3 deficit cities (Boise, Salt Lake City, and Los Angeles)
Decision Variable is the number of units being transferred from surplus to deficit stores
Constraints are
- The total supply out of the stores should not exceed what they are in surplus of
- The deficit stores should not receive more than what they are in deficit of
Objective Function is to maximize profit which is the difference between the revenue and the shipping cost associated with making the transfer from surplus to deficit stores
Process: I have created 3 cost dictionaries for 3 different use-cases to demonstrate the difference in the decision variables as the model tries to maximise the profit