Question: Linear Programming Transportation Model (8 marks) A large manufacturing company is closing three of its existing plants and intends to transfer some of its more
Linear Programming Transportation Model (8 marks)
A large manufacturing company is closing three of its existing plants and intends to transfer some of its more skilled employees to three plants that will remain open. The number of employees avail-able for transfer from each closing plant is as follows.
| Closing Plant | Transferable Employees | ||
| 1 | 60 | ||
| 2 | 105 | ||
| 3 | 70 | ||
| Total | 235 | ||
The following number of employees can be accommodated at the three plants remaining open.
| Open Plants | Employees Demanded | |||
| A | 45 | |||
| B | 90 | |||
| C | 35 | |||
| Total | 170 | |||
Each transferred employee will increase product output per day at each plant as shown in the following table. The company wants to transfer employees so as to ensure the maximum increase in product output.
| To | ||||
| From | ||||
| A | B | C | ||
| 1 | 5 | 8 | 6 | |
| 2 | 10 | 9 | 12 | |
| 3 | 7 | 6 | 8 | |
Because of road construction, shipments are now prohibited from closing plant 1 to open plant A.
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Formulate the Linear Programming for this transportation problem.
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Solve this transportation problem by using MS Excel.
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