EBK OM
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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