A manufacturer produces sport wheels at three plants located in towns A, B and C. The wheels are sent to three warehouses located at X, Y and Z. The plant in Town A has 400 units available each month, Town B has 600 units and Town C has 800 units. The requirements of warehouses at X, Y and Z are 200, 500 and 1,100 respectively. The transportation costs (in RM) for various routes are given in the table below. The company would like to determine the least-cost way to meet the demand at each of the warehouses. Factory Warehouse X Y A 2 2 3 B 1 3 4

A manufacturer produces sport wheels at three plants located in towns A, B and C. The wheels are sent to three warehouses located at X, Y and Z. The plant in Town A has 400 units available each month, Town B has 600 units and Town C has 800 units. The requirements of warehouses at X, Y and Z are 200, 500 and 1,100 respectively. The transportation costs (in RM) for various routes are given in the table below. The company would like to determine the least-cost way to meet the demand at each of the warehouses. Factory Warehouse X Y A 2 2 3 B 1 3 4

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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Concept explainers

Optimization Models

Optimization models are mathematical models that help organizations determine the best way to allocate scarce resources to achieve specific objectives. These models can be used to solve a wide variety of problems, from finding the most efficient route for a delivery truck to determining the optimal mix of products to stock in a store.

Question

A manufacturer produces sport wheels at three plants located in towns A, B and C. The
wheels are sent to three warehouses located at X, Y and Z. The plant in Town A has
400 units available each month, Town B has 600 units and Town C has 800 units. The
requirements of warehouses at X, Y and Z are 200, 500 and 1,100 respectively. The
transportation costs (in RM) for various routes are given in the table below. The company
would like to determine the least-cost way to meet the demand at each of the warehouses.
Factory
Warehouse
X
Y
A
2
2
В
1
6.
1
3
4
Formulate an initial feasible solution using the northwest corner rule.
а.
b.
Use the stepping stone method to find the optimal solution that will minimize
transportation cost of this problem.

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