Question: Sepcial Inclass Assignment : Transportation Problem : Unit Transportaion Cost Table below in yellow cells To: Customer 1 Customer 2 Customer 3 Customer 4 Customer

Sepcial Inclass Assignment : Transportation Problem : Unit Transportaion Cost Table below in yellow cells
To: Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Customer 6 Total Factory Capacity
From
Factory A 505045294420721
Factory B 292647453723620
Factory C 443150262830450
Factory D 462149254140587
Factory E 484743403930690
Total Demand 560580459700668
ABC Company wishes to supply its six customers (1 to 6) from its five factories (A to E) as shown above.
The relevant transportation cost per unit for shipments from factories to customers is give in the cost table above (in yellow)
eg If you assign 1 unit demand from Customer 1 to Factory A 1, the cost is $50
If you assign 1 unit demand from Customer 1 to Factory B the cost is $29. And so on..
The capacity of the 5 factories and total demand from the 6 customers is give in column I and row 11 above.
eg Customer 1 demand is 560, Factory A capacity is 721 units and so on.
Q1 What is the optimal assignment of demand to the 5 factories, to minimize transportation costs and also maximize quantity assigned given the capacity constraints?
Determine total quantity assigned and the corresponding total transportation costs.
Q2 Run a sensitivity analysis to quickly detemine the changes in the optimal total costs and total quantity assigned if Factory 1 increases it capacity by 100 units from current 721 to 821 units, demand data stays same the same as above table.
Note you can not resolve Q1 using new capacity numbers, buy only use the Sensitivity Analysis report obtained from Q1 answer.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!