Operations Management
Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter C, Problem 11P
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 7 Kelly Holiday Tavel Ltd is deciding which destination to award its “holiday site of the year” award to. It has compiled the following information and assigned weightings to reflect how important each factor is to its customers. All numbers are percentages. Which destination will win the award?   Safety Culture Food Acapulco 50 70 80 Moscow 5 60 40 Romford 20 10 20 Toronto 80 50 60 WEIGHT 25 50 25       A. Acapulco   B. Moscow   C. Romford   D. Toronto
Question 2 SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in the 5 states listed below. There are four potential sites for home offices: Los Angeles, Tulsa, Denver, and Seattle. The annual fixed cost of locating an office in Los Angeles is $165,000, Tulsa is $131,000, Denver is $140,000, and Seattle is $145,000. The expected number of trips to each state and the travel costs from each potential site are shown below. Each consultant is expected to take at most 40 trips each year. If at most 3 consultants are to be assigned to a home office, where should the offices be set up? How many consultants should be assigned to each office? What is the annual cost of this network? Washington Oregon California Idaho Nevada Los Angeles 150 150 75 150 100 Travel cost ($) Tulsa Denver 250 200 250 200 200 150 200 125 200 125 Seattle 25 75 125 125 150 Number of trips required 40 35 100 25 40 Tips: The limit number of…
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