Qn.1:Three suppliers A, B and C, each produce road grit which has to be delivered to council depots W, X, Y and Z. The stock held at each supplier and the demand from each depot is known. The cost, in pounds, of transporting one lorry load of grit from each supplier to each depot is also known. This information is given in the table. SuppliersDepot WDepot XDepot YDepot ZStock (Lorry Loads)Supplier A18011013029014Supplier B19025015028016Supplier C24027019012020Demand (Lorry Loads)1115141050Use the Vogel’s Approximation Technique (VAT or VAM) and Least Cost Method to supply out all the stocks Compute their total costs incurred Testing for degeneracy for each method As an expert advice management accordingly

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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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Qn.1:

Three suppliers A, B and C, each produce road grit which has to be delivered to council depots W, X, Y and Z. The stock held at each supplier and the demand from each depot is known. The cost, in pounds, of transporting one lorry load of grit from each supplier to each depot is also known. This information is given in the table.

Suppliers	Depot W	Depot X	Depot Y	Depot Z	Stock (Lorry Loads)
Supplier A	180	110	130	290	14
Supplier B	190	250	150	280	16
Supplier C	240	270	190	120	20
Demand (Lorry Loads)	11	15	14	10	50

Use the Vogel’s Approximation Technique (VAT or VAM)
and Least Cost Method to supply out all the stocks
Compute their total costs incurred
Testing for degeneracy for each method

As an expert advice management accordingly

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