Question: You have been hired as a consultant by a refrigerator manufacturer to evaluate the freight costs of motors needed for assembly of the companys refrigerators.

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.

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-5 8. 11 10 12 1,300 Demand 6,000 1,400 800 1,700 1,400 900 6,200 4. 5. B.

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