1. An Electrical Company has three workshops in Koforidua, Accra and Kumasi. These workshops produce the following quantities of electric fan.

Workshops                                          Monthly production (units)

Koforidua                                                                        130

Accra                                                                                70

Kumasi                                                                             100

The monthly demand for these fans in three towns: Sunyani, Cape Coast and Ho is given below:

Destination                                                Weekly Demand (units)

Sunyani                                                                                    80                                                                                                                                            

Cape Coast                                                                               110                                                                                        

Ho                                                                                            60  

                                                                                    

The unit transportation costs per unit (in GH¢000) from the sources to the destinations are as shown:

From	To
	Sunyani	Cape Coast	Ho
Koforidua	9	14	12
Accra	11	10	6
Kumasi	12	8	15

1. 
   
2. Using practical examples from the field of business compare and contrast the concept of balance and unbalance transportation problem. Illustrate your understanding of these concepts by discussing and explaining possible four reasons for balance or unbalance transportation problem using a practical case in industry.

2. Formulate a linear programming (LP) model.  

2. The model in (A) was solved using Solver and part of the Solver output is shown below. Use it to answer the questions that follow.

Adjustable Cells
	Cell	Name	Original Value	Final Value
	$C$4	Koforidua Sunyani	80	80
	$D$4	Koforidua Cape Coast	0	0
	$E$4	Koforidua Ho	0	0
	$C$5	Accra Sunyani	0	0
	$D$5	Accra Cape Coast	10	10
	$E$5	Accra Ho	60	60
	$C$6	Kumasi Sunyani	0	0
	$D$6	Kumasi Cape Coast	100	100
	$E$6	Kumasi Ho	0	0

As a management, science student the MD of the company seeks your expert advice on ways in which to determine the optimal transportation rule. Advise the MD, providing detailed explanation using the table above. Write your answer in a form of a report to the MD.

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