Question: Decision Modeling Subject TABLE 3: Supply Capacities, Demand Requirement and Transportation Cost To Company From Mill Supply (kg) A B 1 10 12 14 200

Decision Modeling Subject

TABLE 3: Supply Capacities, Demand Requirement and Transportation Cost To Company From Mill Supply (kg) A B 1 10 12 14 200 2 7 9 12 260 3 12 6 18 240 Demand (kg) 180 230 340 Because of not enough workers, shipments are prohibited from Mill 2 to Company B. Based on TABLE 3, answer the following questions: a) Find the initial solution using VAM method and calculate the total transportation cost. 6 marks) From/To b) Using STEPPING-STONE method, determine whether the solution in (a) is optimal or not. Justify. (7 marks)

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