QUESTION 3 (14 MARKS) A large manufacturing company based in Rawang, Selangor is trying to optimize...

Transcribed Image Text:

QUESTION 3 (14 MARKS) A large manufacturing company based in Rawang, Selangor is trying to optimize its shipping schedule. Currently the weekly manufacturing capacity at three of its plants is as follows: Plant 1 2 3 The company owns three warehouses - in City A, City B and City C. Demand at these destinations is as follows: Warehouse A B C 2 Capacity 16000 10000 26000 The unit shipping cost from each plant to each warehouse is given in the following table: From/To A B C 2.5 3.5 4.5 1 4.5 1.5 2 2.0 3.2 3 3 Demand 15000 12000 18000 SQQP3023 DECISION MODELING From/To MATRIC NO:. a) Find the initial solution using VAM method and calculate the total transportation cost. (7 marks) b) Using STEPPING-STONE method, determine whether the solution in (a) is optimal or not. Justify. 4 QUESTION 3 (14 MARKS) A large manufacturing company based in Rawang, Selangor is trying to optimize its shipping schedule. Currently the weekly manufacturing capacity at three of its plants is as follows: Plant 1 2 3 The company owns three warehouses - in City A, City B and City C. Demand at these destinations is as follows: Warehouse A B C 2 Capacity 16000 10000 26000 The unit shipping cost from each plant to each warehouse is given in the following table: From/To A B C 2.5 3.5 4.5 1 4.5 1.5 2 2.0 3.2 3 3 Demand 15000 12000 18000 SQQP3023 DECISION MODELING From/To MATRIC NO:. a) Find the initial solution using VAM method and calculate the total transportation cost. (7 marks) b) Using STEPPING-STONE method, determine whether the solution in (a) is optimal or not. Justify. 4