Salvador's Corporation has decided to produce three new products. Five branch plants now have excess product capacity. The unit manufacturing cost of the first product would be $31, $29, $32, $28, and $29, in Plants 1, 2, 3, 4 and 5, respectively. The unit manufacturing cost of the second product would be $45, $41, $46, $42, and $43 in Plants 1, 2, 3, 4, and 5, respectively. The unit manufacturing cost of the third product would be $38, $35, and $40 in Plants 1, 2, and 3, respectively, and Plants 4 and 5 do not have the capability for producing this product. Sales forecasts indicate that 600, 1,000, and 800 units of products 1, 2, and 3, respectively, should be produced per day. Plants 1, 2, 3, 4, and 5 have the capacity to produce 400, 600, 400, 600, and 1,000 units daily, respectively, regardless of the product or combinations of products involved. Assume that any plant having the capability and capacity to produce them can produce any combination of the products in any quantity. Mr. Harry B., the manager of the company, wishes to know how to allocate the new products to the plants to minimize the total manufacturing cost. A. Formulate this problem as a transportation problem by constructing the appropriate cost and requirements table. B. Use the MODI Method in your OR Courseware to obtain an optimal solution for this problem.
Salvador's Corporation has decided to produce three new products. Five branch plants now have excess product capacity. The unit manufacturing cost of the first product would be $31, $29, $32, $28, and $29, in Plants 1, 2, 3, 4 and 5, respectively. The unit manufacturing cost of the second product would be $45, $41, $46, $42, and $43 in Plants 1, 2, 3, 4, and 5, respectively. The unit manufacturing cost of the third product would be $38, $35, and $40 in Plants 1, 2, and 3, respectively, and Plants 4 and 5 do not have the capability for producing this product. Sales forecasts indicate that 600, 1,000, and 800 units of products 1, 2, and 3, respectively, should be produced per day. Plants 1, 2, 3, 4, and 5 have the capacity to produce 400, 600, 400, 600, and 1,000 units daily, respectively, regardless of the product or combinations of products involved. Assume that any plant having the capability and capacity to produce them can produce any combination of the products in any quantity. Mr. Harry B., the manager of the company, wishes to know how to allocate the new products to the plants to minimize the total manufacturing cost. A. Formulate this problem as a transportation problem by constructing the appropriate cost and requirements table. B. Use the MODI Method in your OR Courseware to obtain an optimal solution for this problem.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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