Operations Management
Operations Management
13th Edition
ISBN: 9780135173626
Author: HEIZER, Jay, RENDER, Barry, Munson, Chuck
Publisher: Pearson,
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Chapter C, Problem 10P
Summary Introduction

To determine: The optimal solution and the total cost using transportation problem.

Introduction: The major objective of the transportation problem is to minimize the distributing cost of a product from a source to an origin. Transportation problem is one of the type of linear programming.

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QUESTION 21. Mr. Jack is in the process of expanding his manufacturing business. He decided to opena plant in the coming year. He has four locations in mind. The costs information forthese locations is in the following table. Location A B C D Fixed Costs 60,000 80,000 100,000 130,000 Variable costs/unit 30 20 15 10  a.i. Write an equation to represent the total costs for each location. ii. Draw the total costs lines for each location on the same axes. (Use output rangesof 200, 400, 600, 800 etc. and intervals of $50,000 on the Y axis. iii. Over what range of output is location A the most preferred location? iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location? b. A food manufacturer wants to locate a warehouse to serve its major customers.The customers, annual volume and the X and Y coordinates are shown in thetable below. Customer Annual Volume X-Coordinate Y-Coordinate Judy Inc 25…
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Question 1. Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table.Locations A B C DFixed Costs 60,000 80,000 100,000 130,000Variable Costs/unit30 20 15 10 i.    Write an equation to represent the total costs for each location.ii. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis.iii. Over what range of output is location A the most preferred location?iv. Over what range of output is location B the most preferred location?v. Over what range of output is location C the most preferred location?
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