Arnoff Enterprises manufactures the central processing unit (CPU) for a line of personal computers. The CPUs are manufactured in Seattle, Columbus, and New York and shipped to warehouses in Pittsburgh, Mobile, Denver, Los Angeles, and Washington, D.C., for further distribution. The following table shows the number of CPUs available at each plant, the number of CPUs required by each warehouse, and the shipping costs (dollars per unit):

Warehouse

Plant	Pittsburgh	Mobile	Denver	Angeles	Washington	CPU’s Available
Seattle	10	20	5	9	10	9000
Columbus	2	10	8	30	6	4000
New York	1	20	7	10	4	8000
CPUs Required	3000	5000	4000	6000	3000

 

a) Develop a network representation of this problem. 

b) Develop linear programming model for this network. 

c) Find initial transportation cost (Northwest Corner Rule). 

d) Determine the amount that should be shipped from each plant to each warehouse to minimize the total shipping cost. 

e) The Pittsburgh warehouse just increased its order by 1000 units, and Arnoff authorized the Columbus plant to increase its production by 1000 units. Will this production increase lead to an increase or decrease in total shipping costs? Solve for the new optimal solution

Answer rating: 100% (QA)

Network representation of distribution system is shown in a graphical method The amount of CPU units available at each plant and required number at each ware house should be represented in this graph ... View the full answer