Q1. An LMN sugar mill company, department stores wish to purchase 10,000 handbags of which 2,000 are of style A, 2,000 are of style B, 3,000 of style C and 3,000 are of style D. Four manufacturers P, Q, R and S bid to supply not more than the following quantities, all styles combined. P= 1,500, Q = 2,600, R = 3,500 and S = 3,000. The following table gives the cost per handbag of each style of the bidders in RO. per handbag: Manufacturers Style P R A 12 10 8 10 11 9. 7 8 10 7 10 10 8 (a) Use the transportation model to determine how should orders to be placed by the department store to minimize the total cost? (b) Compare transportation cost by both models(NWCR and LCM)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Q1.
An LMN sugar mill company, department stores wish to purchase 10,000 handbags of which 2,000 are
of style A, 2,000 are of style B, 3,000 of style C and 3,000 are of style D. Four manufacturers P, Q, R
and S bid to supply not more than the following quantities, all styles combined. P= 1,500, Q = 2,600, R
= 3,500 and S = 3,000.
The following table gives the cost per handbag of each style of the bidders in RO. per handbag:
Manufacturers
Style
P
Q
A
9.
12
10
8
10
11
9
7
8.
10
7
10
D
10
9
8
(a) Use the transportation model to determine how should orders to be placed by the department
store to minimize the total cost?
(b) Compare transportation cost by both models(NWCR and LCM)
Transcribed Image Text:Q1. An LMN sugar mill company, department stores wish to purchase 10,000 handbags of which 2,000 are of style A, 2,000 are of style B, 3,000 of style C and 3,000 are of style D. Four manufacturers P, Q, R and S bid to supply not more than the following quantities, all styles combined. P= 1,500, Q = 2,600, R = 3,500 and S = 3,000. The following table gives the cost per handbag of each style of the bidders in RO. per handbag: Manufacturers Style P Q A 9. 12 10 8 10 11 9 7 8. 10 7 10 D 10 9 8 (a) Use the transportation model to determine how should orders to be placed by the department store to minimize the total cost? (b) Compare transportation cost by both models(NWCR and LCM)
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