14. A company has three cement plants from which cement has to be transported to four distribution centres. With identical costs of production at the three plants, the only variable costs involved are transportation costs. The monthly demand at the four distribution centres and the distance from the plants to the distribution centres (in km) are given below: Distribution centres Plants Monthly production W Y (tonnes) A 500 1,000 150 800 10,000 B 200 700 500 100 12,000 C 600 400 100 900 8,000 Monthly demand (tonnes) 9,000 9,000 10,000 4,000 The transportation charges are ? 10 per tonne per km. Suggest optimal transportation schedule and indicate the total minimum transportation cost. If, for certain reasons, route from plant C to distribution centre X is closed down, will the transp- ortation schedule change? If so, suggest the new schedule and effect on total cost.

14. A company has three cement plants from which cement has to be transported to four distribution centres. With identical costs of production at the three plants, the only variable costs involved are transportation costs. The monthly demand at the four distribution centres and the distance from the plants to the distribution centres (in km) are given below: Distribution centres Plants Monthly production W Y (tonnes) A 500 1,000 150 800 10,000 B 200 700 500 100 12,000 C 600 400 100 900 8,000 Monthly demand (tonnes) 9,000 9,000 10,000 4,000 The transportation charges are ? 10 per tonne per km. Suggest optimal transportation schedule and indicate the total minimum transportation cost. If, for certain reasons, route from plant C to distribution centre X is closed down, will the transp- ortation schedule change? If so, suggest the new schedule and effect on total cost.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section7.3: Pricing Models

Problem 14P: PRICING SUITS AT SULLIVANS Sullivans is a retailer of upscale mens clothing. Suits cost Sullivans...

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