a.Find the starting solution of this transportation model by Least Cost Method. (15P) (Unit transportation costs are given in the table) D1 D2 D3 D4 Supply M1 16 24 14 11 25 M2 21 18 17 9 30 M3 15 13 21 14 40 Demand 25 25 20 25
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- a.Find the starting solution of this transportation model by Least Cost Method. (15P) (Unit transportation costs are given in the table)
D1
D2
D3
D4
Supply
M1
16
24
14
11
25
M2
21
18
17
9
30
M3
15
13
21
14
40
Demand
25
25
20
25
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- 3. What is meant by the concept of derived demand? Why is it so important in the area of transportation for shippers and carriers? Does this concept have application in other area, give some examples? 4. Explain the difference between elastic and inelastic demand. Why are the two concepts important to transportation demand? 5. The aggregate demand for transportation service is said to be inelastic while the demand for an individual mode or carrier is often elastic. Explain why this is important to carriers and shippers. 6. Explain the concept of total landed cost as it related to transportation. How does it influence market boundaries?A. An Electrical Company has three workshops in Koforidua, Accra and Kumasi. These workshops produce the following quantities of electric fan. Workshops Monthly production (units) Koforidua 130 Аccra 70 Kumasi 100 The monthly demand for these fans in three towns: Sunyani, Cape Coast and Ho is given below: Destination Weekly Demand (units) Sunyani 80 Саре Сoast 110 Но 60 The unit transportation costs per unit (in GH¢000) from the sources to the destinations are as shown: To From Sunyani Саре Сoast Но Koforidua 9. 14 12 Accra 11 10 6. Kumasi 12 15 00Qn1. Find the optimal solution to the transportation problem using MODI method. Warehouses Supply WI W2 W3 W4 P1 19 30 50 12 Plants 5. 2. P2 70 30 40 60 P3 40 10 60 20 3. 15 Demand 4)
- 2) Using the cost table of the transportation problem shown below, do the following: a) Develop the appropriate LP model of the problem. WAREHOUSE PLANT A B C D DEMAND 1 5 10 7 20 200 2 3 12 5 25 400 3 8 10 10 18 600 4 7 8 12 30 1000 SUPPLY 200 500 300 1000What is the initial total cost of the given transportation model if an Intuitive Approach method is applied? DESTINATION SOURCE DEMAND O 3050 O 3140 O 3045 O 3040 X Y N 4 P 75 8 12 S 11 Q 80 5 8 11 R 120 7 10 10 S 50 11 13 14 SUPPLY 100 125 100 325es Problem 11-4 (LO2) An appliance manufacturer has a plant near Toronto that receives small electric motors from a manufacturer located in Winnipeg. The demand for motors is 118,000 units per year. The cost of each motor is $125. The motors are purchased in lots of 3.400 units. The ownership of motors transfers to the appliance manufacturer in Winnipeg. The question is which mode of transportation, truck or train, the appliance manufacturer should use to bring the motors from Winnipeg to Toronto. The railroad company charges $3 per motor. and it takes approximately seven days by train. The trucking company charges $5 per motor, but it takes only three days. The appliance manufacturer will keep 1,400 units as safety stock if a truck is used and 2.500 units as safety stock if a train is used for transportation. Assume 365 days per year. If the holding cost rate is 25 percent of unit cost per year, which mode of transportation will minimize total transportation and in-transit and safety…
- Q2. Pharmaceutical company producing asingle product sold it through five agencies situated in different cities. All of sudden there rouse a demand for the product in another five cities that didn't agency of the company. The company is now facing the problem of deciding on how to assign the existing agencies in order to dispatch the product to needy cities in such a waythat the travelling distance is minimized. The distance between the surplus and deficit cities in kilometer is given the following table. Surplus city Deficit cities Deficit cites A1 160 130 115 190 200 B1 135 120 130 160 175 C1 140 110 125 170 185 D1 50 50 80 80 110 E1 55 35 80 80 105 Determine the optimum assignment schedule.2. Unbalanced. Provide the transportation model for the calculation of cost given the following data: Use the Stepping Stone Method to solve the following. Use degeneracy method or dummy method if necessary.The Bright Company wants to figure out the best way to ship their new product, Flying Widgets, from their factories through their warehouses to their retail outlets. They would like to set up a Transhipment table so they can use POM to find the least cost shipping routes. They have hired you to set up the Transhipment table based on the information below. You will be paid handsomely if you can come up with the correct table. Shipping Costs Shipping Costs 01 02 03 04 Wi W2 W3 W1 4. 2 F1 4 W2 4 F2 4 2 W3 4. 3. 4. Also, Flying Widgets can be shipped from Factory 1 to Factory 2 for $3 per unit. Factory 1 can produce 300 units and factory 2 can produce 100 units. Outlet 1 demand is 50 units, Outlet 2 is 150 units, Outlet 3 is 100 units, and Outlet 4 is 100 units.
- 2. Metropolitan Manila has four incinerator sites for processing solid waste. There are five garbage collection areas within the metropolis. The city wants to determine the least-cost method of disposing of its trash. Each incinerator is characterized by an operating cost for processing each ton of waste and also a cost for transporting each ton of waste is summarized in the table below: Collection Incinerator Site Area 1 2 3 4 50 120 110 60 B 100 55 90 70 60 40 80 65 90 75 85 110 80 100 95 65 Incinerator sites 1 and 2 have a weekly capacity of 6,000 tons each, site 3 has a capacity of 8,000 tons and site 4 has a capacity of 10,000 tons. There are 4,000 tons of waste generated at area A, 8,000 tons at area B and 5,000 tons each at areas C and D, each week. A total of 25,000 tons of waste each week are generated from all five areas.eBook Problem 10-31 A long-distance telephone company uses a fiber-optic network to transmit phone calls and other information between locations. Calls are carried through cable lines and switching nodes. A portion of the company's transmission network is shown here. The numbers above each arc show the capacity in thousands of messages that can be transmitted over that branch of the network. To keep up with the volume of information transmitted between origin and destination points, use the network to determine the maximum number of messages that may be sent from a city located at node 1 to a oty located at node 7. 3 Maximum number of messages -Solving this problem using the transportation simplex method (i.e. Chapter 19) to min-imize the transportation costs can take numerous iterations. Clearly show with expla-nations between steps (this is not a small problem) the first 5 iterations of this method. Clearly state your delivery answer between iterations and the final costs. What do you observe about these costs.