13:38 c @ * 49% i Homework hw6.pdf 4. 9.2-8 (1pt) DJ 92-8The Cost-Less Corp. sup

Question

13:38 c @ * 49% i Homework hw6.pdf 4. 9.2-8 (1pt) DJ 92-8The Cost-Less Corp. supplies its four retail outlets from its four plants. The s each retail outlet is given below hipping cost per shipment from each plant to Unit Shipping Cost Retail Outlet 2 500 $200 300 200 $600 $900 $400 $100 $400 $100 $200 $300 200 300 100 200 Plant Plants 1, 2, 3, and 4 make 10, 20, 20, and 10 shipments per month, respectively. Retail outlets 1, 2,3, and 4 need to receive 20, 10, 10, and 20 shipments per month, respectively The distribution manager, Randy Smith, now wants to deter- mine the best plan for how many shipments to send from each plant to the respective retail outlets each month. Randy's objective is to minimize (a) Formulate this problem as a transportation problem by con- the total shipping cost. structing the appropriate parameter table. (b) Use the northwest corner rule to construct an initial BF solution. (c) Starting with the initial basic solution from part (b), interac- tively apply the transportation simplex method to obtain an op- timal solution.

Explanation / Answer

a)

Production is 19000 gallons,

The onion is 150/(150+120+80+50) = 0.375

The production of = 7125 Gallons,

b)

Total time =(19000/500) + 1.5*4 = 44 hours

In 44 hours the company is producing 19000 gallons, so in one hour it will produce

19000/44 = 431.8182 gallons

Total demand = 150+120+80+50 = 400 Gallons. Since, production is greater than demand we can say that production will be able to meet the demand.

c)

x/((x/500) + 1.5*4) = 420

Solving this for x by Proceed in similar way be doing the reverse calculation we came to know that the production cycle will be of 15750 Gallons.

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