You have been hired as a consultant by a refrigerator manufacturer to evaluate the freight costs of

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You have been hired as a consultant by a refrigerator manufacturer to evaluate the freight costs of motors needed for assembly of the company€™s refrigerators. Relevant data on plant capacities, warehouse demands, and shipping cost per unit between each plant and warehouse are provided in the following table:

To Warehouse From Capacity $8 $6 $9 $12 Plant-1 $10 1,200 12 1,500 Plant-2 Plant-3 6 9. 900 Plant-4 13 10 8. 1,100 Plant


1. Use the matrix least cost method to first find an initial feasible solution and then the stepping stone method to find the least cost optimum solution.

2. Verify the least cost solution found in a) by resolving the above problem using Excel Solver.

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Related Book For  book-img-for-question

Operations Management Managing Global Supply Chains

ISBN: 978-1506302935

1st edition

Authors: Ray R. Venkataraman, Jeffrey K. Pinto

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