EBK OM
6th Edition
ISBN: 9781305888210
Author: Collier
Publisher: YUZU
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Chapter 6, Problem 15PA
Summary Introduction
Interpretation:Solution which minimizes total distribution costs is to be determined.
Concept Introduction:
FTE is (Full time equivalent) is the number of hours a full time employee works in a stipulated time period. It shows an average hour for work.
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Suppose there is a transportation model with 4 factories and 6 warehouses. In order to develop an initial solution using the intuitive lowest cost method, do we have to add one or more dummy sources in the transportation matrix, and why?
(b)Consider a transportation model with m sources and n destinations.
Describe briefly how you can resolve the following situations while
solving the problem:
(i)
Total supply is greater than total demand,
Consider the following transportation decision-making information:
Plant
Capacity
Store
Demand
A
400
X
200
B
500
Y
250
C
100
Z
300
Total
1000
Total
750
Cost to ship from plant to store (per unit of demand)
Plant
Store
X
Y
Z
A
$2
$2
$3.5
B
$4
$5
$4.5
C
$3
$3
$3
A. Develop the following shipping assignment table that uses the Solver function to find the optimal shipping patterns between the plants and the stores.
Plant
Store
X
Y
Z
A
B
C
B. What is the minimal shipping cost?
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