Concept explainers
a)
To determine: Optimal solution and total cost using northwest-corner method.
Introduction: The major objective of the transportation problem is to minimize the distributing cost of a product from a source to an origin. Transportation problem is one of the types of linear programming.
b)
To determine: Optimal solution and total cost using intuitive lowest-cost starting method.
Introduction: The major objective of the transportation problem is to minimize the distributing cost of a product from a source to an origin. Transportation problem is one of the types of linear programming.
c)
To determine: Optimal solution and total cost using stepping stone method.
Introduction: The major objective of the transportation problem is to minimize the distributing cost of a product from a source to an origin. Transportation problem is one of the types of linear programming.
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Operations Management
- Question 3 Maya Itd. wants to use the Centre of Gravity location technique to determine where to setup its distribution centre. I. What is the main objective of using this technique? II. What information will be needed in order to use this technique? III. Setup a numerical example that can be used to demonstrate to the owner of the company how the technique can be used.arrow_forwardQuestion 2 a. Discuss the main channels through which interest rates affect the market for owner-occupied houses and how the prices of owner-occupied houses will.be. affected in the short and long term if interest rates increase in 2022. b. Discuss whether during the coronavirus crisis in 2020 there were any movements of the demand curve and/or the new supply curve in the Cyprus residential real estate market. Specifically.explain in which direction the demand curve and/or the. new.sUrply.curxe.for.residentialreal estate must have.moved and what specific. factors.may.haxE.caused such amexe.at.mexements. c. What is the short-term and long-term effect on residential real estate prices of the demand curve and/or new supply movements that you discussed in (b). d. According to a recent study, the elasticity of the supply of residential real estate in Nicosia is 1.4 and in Limassol 1.9. If we assume that in 2022 the demand for residential real estate will increase by 8% in both cities and…arrow_forwardQuestion (2): Answer the following problem: A manufacturer of a certain industrial component is interested in locating a new facility in a target market. There are four supply points A, B, C and D. Two possible sites for the new facility are being considered, one in (market Q) and the other in (market Z). The following table shows the distances being considered and the four supply points. Use the load- distance model to determine whether the new facility should be located in (market Q) or in (market Z). (State your decision) Supply points Distance to market Q Distance to market Z Load between the supply point and new facility. A 32 14 15 B 8 14 10 C 12.5 32 12 D 6.5 26 8arrow_forward
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- Exercise of Transportation Problem Q1: Metro Water Company (Distributing natural resource) Metro Water District is an agency that administers water distribution in a large geographic region. The region is arid, so water must be brought in from outsid e the region. There are three sources of imported water, which are Colombo River, Sa cron River, and Calorie River. Four cities is in need of water, which are city Berdoo, L OS Devils, San Go, and Hollyglass. The cost for taking water from each river and s ending water to each city is different, shown in the following table. Metro Water Comp any wants to minimize the total cost when distributing the needed water. How mục h water should Metro take from each river, and how much should they send from each river to each city Cost per Acre Foot Berdoo Los Devils San Go Hollyglass Available Colombo River $160 $130 $220 $170 5 Sacron River 140 130 190 150 6 Calorie River 190 200 230 5 - Needed 4 1.5 (million acre feet)arrow_forwardQuestion 4a. ABC Ltd. Wants to choose the best location for its new aluminum plant. The manager ofproductions and operations has three possible locations to choose from. His assistantrecommends that he use break-even analysis location technique to help determine whichlocation is best based on costs.I. Design a numerical example in order to demonstrate to the Productions andOperations Manager how break-even analysis can be used in this case. II. Demonstrate to the OM manager how to go about choosing the best location using thenumerical example you designed above. b. The staff training centre of a telecommunications company provides training for itsregional employees every year. The capacity of the training centre was designed to train1,800 employees per year. Due to the complexity of the programmes, the mostemployees that centre can train per year is 1,400. In the past year, 1,350 employees were trained. Calculate:-i. The efficiency rate of the training centre. ii. The utilisation rate…arrow_forwardQUESTION 7 Kelly Holiday Tavel Ltd is deciding which destination to award its “holiday site of the year” award to. It has compiled the following information and assigned weightings to reflect how important each factor is to its customers. All numbers are percentages. Which destination will win the award? Safety Culture Food Acapulco 50 70 80 Moscow 5 60 40 Romford 20 10 20 Toronto 80 50 60 WEIGHT 25 50 25 A. Acapulco B. Moscow C. Romford D. Torontoarrow_forward
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