Question: ( 2 ) Find an optimal solution for the following transportation problem. TO FROM Valley ( V ) Town ( T ) Junction ( J

(2) Find an optimal solution for the following transportation problem.
TO
FROM
Valley
(V)
Town
(T)
Junction
(J)
Burg
(B) Supply
Macon
(M)
$6 $8 $7 $4
30050350
York
(Y)
$3 $10 $2 $9
150250200600
Perry
(P)
$14 $4 $9 $12
250250
Demand 3002002504501,200
The above feasible plan is obtained by applying the Northwest Corner Rule (e.g.,300 from M to V, etc.), and
its total cost =300($6)+50($8)+150($10)+250($2)+200($9)+250($12)= $9,000.
Using the Stepping-Stone method to find an optimal plan. The improvement indices below
TO
FROM
Valley
(V)
Town
(T)
Junction
(J)
Burg
(B) Supply
are determined as follows:
(row M first, then rows Y and P)
Macon
(M)
$6 $8 $7 $4
350
MJ: 72+108=7
30050 MB: 49+108=3
York
(Y)
$3 $10 $2 $9
600
YV: 310+86=5
150250200 PV: 1412+910+86=3
Perry
(P)
$14 $4 $9 $12
250
PT: 412+910=9*
250 PJ: 912+92=4
Demand 3002002504501,200* the most negative index
We focus on cell PT (index =9). Its closed path is: PT to PB to YB to YT, and back to PT. To increase the quantity in
PT, we need to adjust PB down, YB up, and YT down. Therefore, the next improved plan is:
TO
FROM
Valley
(V)
Town
(T)
Junction
(J)
Burg
(B) Supply
Part (b) Find the indices(show steps)
Row M first, then rows Y and P
Macon
(M)
$6 $8 $7 $4
350
______________________________
30050______________________________
York
(Y)
$3 $10 $2 $9
600
______________________________
250350______________________________
Perry
(P)
$14 $4 $9 $12
250
______________________________
150100______________________________
Demand 3002002504501,200 Asterisk the most negative index
Part (a) Find the new TC =___________________________________________________________(show steps).
Part (c) Determine the next improved plan.
TO
FROM
Valley
(V)
Town
(T)
Junction
(J)
Burg
(B) Supply
Part (e) Find the indices(show steps)
Row M first, then rows Y and P
Macon
(M)
$6 $8 $7 $4
350
______________________________
______________________________
York
(Y)
$3 $10 $2 $9
600
______________________________
______________________________
Perry
(P)
$14 $4 $9 $12
250
______________________________
______________________________
Demand 3002002504501,200 Asterisk the most negative index
Part (d) Find the new TC =____________________________________________________________(show steps).
Part (f) Is the current solution optimal? ______. Explain ________________________________________________
________________________________________________________________(hint: see Online Module 8, p.M8-4).

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