Question

Question 1: The Cost-Less Corp. supplies its four retail outlets from its three plants. The shipping cost per shipment from each plant to each retail outlet is given below.

	R1	R2	R3	R4
P1	30	10	25	20
P2	15	25	30	10
P3	20	30	15	20

Part a) Formulate this problem as an assignment problem and solve it to find the best strategy for assigning production plants to retail outlets. (No need to show your steps, only list all possible assignments and minimum assignment cost)

Part b) Each plant can produce up to 150 products per month. Retail outlets 1, 2, and 3 need to receive 100, 120, 150, and 100 products per month. The company makes a revenue of 110 in for the manufacture of each unit of product. (Only show the table)

Part c) Use the minimum cost rule to construct an initial BF solution and calculate its transportation cost. (Show the final solution)

Answer 1

HI,

Please find the answer as below. If you like the answer, please up vote.

Answer

1. Formulation of LP -

2. Solution of LP

I have used excel solver to solve the problem. I have attahched the screenshot of Input Data, Formulas and Constraints used and optimal solution for the reference.

Minimum Transportation cost = 5950

Allocation of Production is as below.

	R1	R2	R3	R4	Supply
P1	0	120	0	30	150
P2	80	0	0	70	150
P3	0	0	150	0	150
P4	20	0	0	0	20
Demand	100	120	150	100

1. Snapshot of Inout Data

2. Snapshot of Formulas Used

3. Snapshot of Constraints used

4. Screenshot of Optimal Solution