3. A flour company has three factories in three different places, namely Kerawang, Bekasi and Tangerang with a capacity of 90, 60 and 50 tons/month, respectively. Produced Flour Products sent to three sales locations, namely Warehouse A, Warehouse B and Warehouse C with a sales request 50, 110 and 40 respectively. Transport costs (Rp. 000 per tonne of cement) from each factory to Sales locations are as follows: From Factory To Warehouse Factory capacity A Kerawang Rp 20 Rp Rp 8 90 Bekasi Rp 15 Rp 20 Rp 10 60 Tangerang Rp 25 Rp 10 Rp 19 50 Warehouse Needs 50 110 40 200 a. Make a representation in the form of a simple network b. How does the company allocate cement shipments from the three factories to the three locations sales so that the shipping cost is minimum and what is the minimum shipping cost if using the NWC (North West Corner) method? c. How does the company allocate cement shipments from the three factories to the three locations sales so that the shipping cost is minimum and what is the minimum shipping cost if using the Least Cost method?

Practical Management Science
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Author:WINSTON, Wayne L.
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3. A flour company has three factories in three different places, namely Kerawang, Bekasi and Tangerang with a capacity of 90, 60 and 50
tons/month, respectively. Produced Flour Products sent to three sales locations, namely Warehouse A, Warehouse B and Warehouse C with a
sales request 50, 110 and 40 respectively. Transport costs (Rp. 000 per tonne of cement) from each factory to Sales locations are as follows:
From Factory
To Warehouse
Factory capacity
A
Kerawang
Rp
20
Rp
Rp
8
90
Bekasi
Rp
15
Rp
20
Rp
10
60
Tangerang
Rp
25
Rp
10
Rp
19
50
Warehouse Needs
50
110
40
200
a. Make a representation in the form of a simple network
b. How does the company allocate cement shipments from the three factories to the three locations sales so that the shipping cost is
minimum and what is the minimum shipping cost if using the NWC (North West Corner) method?
c. How does the company allocate cement shipments from the three factories to the three locations sales so that the shipping cost is
minimum and what is the minimum shipping cost if using the Least Cost method?
Transcribed Image Text:3. A flour company has three factories in three different places, namely Kerawang, Bekasi and Tangerang with a capacity of 90, 60 and 50 tons/month, respectively. Produced Flour Products sent to three sales locations, namely Warehouse A, Warehouse B and Warehouse C with a sales request 50, 110 and 40 respectively. Transport costs (Rp. 000 per tonne of cement) from each factory to Sales locations are as follows: From Factory To Warehouse Factory capacity A Kerawang Rp 20 Rp Rp 8 90 Bekasi Rp 15 Rp 20 Rp 10 60 Tangerang Rp 25 Rp 10 Rp 19 50 Warehouse Needs 50 110 40 200 a. Make a representation in the form of a simple network b. How does the company allocate cement shipments from the three factories to the three locations sales so that the shipping cost is minimum and what is the minimum shipping cost if using the NWC (North West Corner) method? c. How does the company allocate cement shipments from the three factories to the three locations sales so that the shipping cost is minimum and what is the minimum shipping cost if using the Least Cost method?
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