Q1. Find the initial basic feasible solution of the following transportation problem by (a) Northwest-corner cell method (b) Least cost cell method Destination Source I 2 3 4 1 2 3 Supply 2 7 4 5 3 3 I 8 5 4 7 7 1 6 2 14 Demand 2 9 18 State which of method is better.
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- a) Use the Northwest Corner Rule to develop an initial solution. b) Apply the Stepping-Stone Method to find the minimum transportation cost. c) Calculate the total cost for this situation.4. Companies A, B, and C supply components to three plants (F, G, and H) via two crossdocking facilities (D and E). It costs $4 to ship from D regardless of final destination and $3 to ship to E regardless of supplier. Shipping to D from A, B, and C costs $3, $4, and $5, respectively, and shipping from E to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. Crossdock facilities D and E can handle 600 and 700 units, respectively. Logistics Manager, Aretha Franklin, had previously used "Chain of Fools" as her supply chain consulting company, but now turns to you for some solid advice. Set up the solution in Excel and solve with Solver. What are total costs?given the transportation problem, assume that the demands at the 4 destinations are 5, 5, 7, and 8 units, respectively, and the supplies at the 4 sources are 7, 3, 7 and 8 units, respectively.C₁₁=7ㅤ C₁₂=9ㅤ C₁₃ = 1ㅤ C₁₄ = 10 C₂₁= 22ㅤ C₂₂ = 25ㅤ C₂₃ = 16ㅤ C₂₄ = 26 С₃₁ = 28ㅤ C₃₂ = 32ㅤ C₃₃ = 24ㅤ Сз₄ = 32 C₄₁ = 12ㅤ C₄₂ = 14ㅤ C₄з = 6ㅤ C₄₄ = 16where m=4, n=4what is the optimal solution using vogel's approximation method, least-cost method, and northwest-corner rule?
- Obtain the initial basic feasible solution to the following transportation problem using north- west corner rule D1 D2 D3 D4 SUPPLY O1 6 4 1 5 14 O2 8 9 2 7 16 O3 4 3 6 2 5 DEMAND 6 10 15 4 Where O1, O2, O3, O4 are the origins and D1, D2, D3, D4 are requirements respectively. Obtain the minimum cost and comment upon the concept of transportation problem and its significance in detail.FloorsRUs is considering new locations for its manufacturing plants. Costs for constructing a new facility in Huntsville are $1,100,000 and the company estimates that for every product from its new line, there would be an additional cost of $3. If the company were to locate in Hays, the new facility would cost $1,800,000 and each product would incur a $2 incremental cost. The company plans to sell the products to retailers for $7. At what volume is the point of indifference? At what forecasted volumes should FloorsRUs select Huntsville as their new manufacturing location and what volumes should the company select Hays and why?Which of the following is NOT a method to develop an initial solution to a transportation model? - Group of answer choices - None...all are methods to develop an initial solution - northwest corner method - linear programming - intuitive least cost method
- Consider the transportation problem having the cost and requirement table below. a. Obtain the initial basic feasible solution using all the three methods (i. Northwest-Corner, ii. Least-Cost and iii. VAM) and determine the value of z. b. Use the most optimal initial basic feasible solution from (a) as your starting point to find the optimal solution. c. Draw a network showing the quantities obtained in the final iteration and the optimal value of z.Companies A, B, and C supply components to three plants (F, G, and H) via two crossdocking facilities (D and E). It costs $4 to ship from D regardless of final destination and $3 to ship to E regardless of supplier. Shipping to D from A, B, and C costs $3, $4, and $5, respectively, and shipping from E to F, G, and H costs $10, $9, and $8, respectively. Suppliers A, B, and C can provide 200, 300 and 500 units respectively and plants F, G, and H need 350, 450, and 200 units respectively. Crossdock facilities D and E can handle 600 and 700 units, respectively. Logistics Manager, Aretha Franklin, had previously used "Chain of Fools" as her supply chain consulting company, but now turns to you for some solid advice. What is the objective function? Group of answer choices Max Z = $3AD + $3AE + $4BD + $3BE + $5CD + $3CE + $4DF + $4DG + $4DH + $10EF + $9EG + $8EH Min Z = $3AD + $3AE + $4BD + $3BE + $5CD + $3CE + $4DF + $4DG + $4DH + $10EF + $9EG + $8EH Min Z = $3AD + $3BE + $5CD + $3CE…A new airline has decided to join the market. It is considering offering flights out of Cagayan, and would initially like to travel to three different locations: Cebu, Palawan, and Bohol. The distances of each round-trip flight going out of Cagayan are (approximately): 720 miles, 1500 miles, and 1140 miles, respectively. The company would like to use the slogan, “the average price per flight is never more than P10, 000.” As for costs, it anticipates flights to Cebu will run about 10% of airfare. Similarly, Palawan will run 12% and Bohol will run 14% of airfare. The company wants to ensure that the overall average cost is no more than 10% of earned airfare. Recent market research allows the company to conclude that it could probably sell about 1900 Cebu tickets, 700 Palawan tickets, and 1000 Bohol tickets. Under these conditions and assuming that all tickets sold are round-trip flights, how much should the company charge per ticket in order to maximize its total revenue?a. Define the…
- A company has three existing warehouses to which it will ship furniture from a new factory whose location must be decided. The factory will receive raw materials from its wood supplier and fabric supplier. The annual number of shipments, shipment costs and the location of the suppliers and warehouses are shown below Existing facilities Annual L to or from fact cost Coordinate location Wood supplier 120 10 (100, 400) Fabric supplier 200 10 (800,700) Ware h 1 61 10 (300, 600) Ware h 2 40 10 (200, 100) Ware h 3 70 10 (600, 200) Using the median load answer the following questions –Where the factory should be located to minimize annual transportation cost –What will be the minimum annual transportation costIn the original RedBrand problem, suppose the plantscannot ship to each other and the customers cannotship to each other. Modify the model appropriatelyand reoptimize. How much does the total cost increasebecause of these disallowed routes?A bank has its head office in the financial district in the middle ofa city. A bank has six branches, three in the north of the city and threein the south all 5 km from the centre and spaced 3 km apart. The bankwishes to link all its branches via private leased lines but mustdecide between providing an individual line to each branch via anumber of inter-branch links and a smaller number of multiplexed linesto the centre. If a modem costs £100, a multiplexer/demultiplexercosts £200 and leased lines cost £100 per km per year to rent, suggesta design that will yield the most cost effective solution if theinstallation is to remain in operation for four years. 1st option is - link all branches by providing individual line to each branch via a number of inter branch links to the centre. 2nd option is - link all branches by providing smaller number of multiplexed lines to the centre Please calculate both options and choose the most cost effective solution for four years?