Question: Only typed and the complete answer will be accepted 1. A company wishes to transport goods from three supply points to four demand points. The

Only typed and the complete answer will be accepted

Only typed and the complete answer will be

1. A company wishes to transport goods from three supply points to four demand points. The per unit costs, supply point capacities and demand point requirements are: Total Demand 1 Demand 2 Demand 3 Demand 4 capacity Supply 1 4 3 + a 7 8 150 Supply 2 5 3 + b 3 2+ C 180 + d Supply 3 2 3 6 9 100 + e Total 90 95 80 105 Demand Where: a = 2, b = 0, c = 2, d = 8 and e = 9. a) Formulate this problem algebraically as a balanced transportation problem to minimise the total cost. b) Give the tabular form of your resulting balanced transportation model and find a basic feasible solution using the North-West Corner method. Give possible advantages and disadvantages of the North-West Corner method. c) Use the transportation simplex method, starting from your solution in b), to find an optimal solution d) From your findings, make recommendations, in non-technical language, to the company with regards to what they should do. You should include possible disadvantages as well as advantages of using the solution you have found in c)

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