Consider the following distribution problem from 4 plants to 4 customers for the HighQuality Chemicals Company Limited.

(a) Apply the least-cost-first rule to determine a starting solution. Then, find the minimum shipping schedule and the corresponding total cost.

(b) Suppose that there is an increase in the unit shipping cost from P3 to C3 by $y. What is the smallest value of y that the minimum shipping schedule obtained in (a) starts to change? Find also an alternative minimum shipping schedule and the corresponding total cost in this case.

 

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Unit shipping costs to customers ($) Plants C1 C2 C3 C4 Сарасity P1 7 9 9. 4 200 P2 2 1 3 14 250 P3 3 11 10 9. 350 P4 12 200 Demand 100 200 300 400 Unit shipping costs to customers ($) Plants C1 C2 C3 C4 Сарасity P1 7 9 9. 4 200 P2 2 1 3 14 250 P3 3 11 10 9. 350 P4 12 200 Demand 100 200 300 400

Answer rating: 100% (QA)

A The smallest transportation cost is 1 in cell P2C2 The allocation to this cell is min250200 200 This satisfies the entire demand of C2 and leaves 250 200 50 units with P2 Table1 C1 C2 C3 C4 Supply P... View the full answer