Show your step-by-step process using THE SPECIAL PURPOSE LINEAR PROGRAMMING: MODI TRANSPORTATION METHOD to solve this problem. XYZ Incorporated has received a contract to supply gravel to three new road projects located at three different locations. Project A needs 174 truckloads, Project B needs 204 truckloads, and Project C needs 143 truckloads. The company has three gravel warehouses located in three different places. Warehouse 1 has 158 truckloads available, warehouse 2 has 184, and warehouse 3 has 179. The cost of transportation from the warehouse to the projects are: from warehouse 1 to Projects A, B, C = Php 4, Php 8, Php 8 per truckload respectively. From warehouse 2 to Projects A, B, C = Php 16, Php 24, Php 16 per truckload respectively. From warehouse 3 to Projects A, B, C = Php 8, Php 16, Php 24 per truckload respectively. The objective is to design a plan of distribution that will Minimize the cost of transportation.

Show your step-by-step process using THE SPECIAL PURPOSE LINEAR PROGRAMMING: MODI TRANSPORTATION METHOD to solve this problem. XYZ Incorporated has received a contract to supply gravel to three new road projects located at three different locations. Project A needs 174 truckloads, Project B needs 204 truckloads, and Project C needs 143 truckloads. The company has three gravel warehouses located in three different places. Warehouse 1 has 158 truckloads available, warehouse 2 has 184, and warehouse 3 has 179. The cost of transportation from the warehouse to the projects are: from warehouse 1 to Projects A, B, C = Php 4, Php 8, Php 8 per truckload respectively. From warehouse 2 to Projects A, B, C = Php 16, Php 24, Php 16 per truckload respectively. From warehouse 3 to Projects A, B, C = Php 8, Php 16, Php 24 per truckload respectively. The objective is to design a plan of distribution that will Minimize the cost of transportation.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter11: Simulation Models

Section11.4: Marketing Models

Problem 30P: Seas Beginning sells clothing by mail order. An important question is when to strike a customer from...

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Seas Beginning sells clothing by mail order. An important question is when to strike a customer from the companys mailing list. At present, the company strikes a customer from its mailing list if a customer fails to order from six consecutive catalogs. The company wants to know whether striking a customer from its list after a customer fails to order from four consecutive catalogs results in a higher profit per customer. The following data are available: If a customer placed an order the last time she received a catalog, then there is a 20% chance she will order from the next catalog. If a customer last placed an order one catalog ago, there is a 16% chance she will order from the next catalog she receives. If a customer last placed an order two catalogs ago, there is a 12% chance she will order from the next catalog she receives. If a customer last placed an order three catalogs ago, there is an 8% chance she will order from the next catalog she receives. If a customer last placed an order four catalogs ago, there is a 4% chance she will order from the next catalog she receives. If a customer last placed an order five catalogs ago, there is a 2% chance she will order from the next catalog she receives. It costs 2 to send a catalog, and the average profit per order is 30. Assume a customer has just placed an order. To maximize expected profit per customer, would Seas Beginning make more money canceling such a customer after six nonorders or four nonorders?
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