1. A wholesale company has nine storage depots which it
proposes to rationalize. Four depots, Q, R, S, and T are to be
expanded and five depots, A, B, C, D, and E are to be closed.
Thirty six of the mechanical loaders in the depots to be closed
will be required for use in the enlarge depots.
The mechanical loaders in the five depots to be closed are: ?:
5, ?: 7, ?: 11, ?: 8, and ?: 9 The additional loaders required at
the depots to be expanded are: ?: 8, ?: 9, ?: 11, and ?:8.
The cost of transporting one mechanical loader, in hundreds of
cedis, between depots is given below.
Depots to be Depots to be expanded closed
QRST A3379 B6533 C6487 D5454 E4365
a) Show by calculation the minimum cost plan for meeting the
rationalization requirement by transfers between depots.
b) State at which depot there will be surplus loaders.
c) State with reasons whether or not your solution is
unique.
2. Consider the LP problem below: Minimize: ? = −2? + 8?
Subject to:
3? + 4? ≤ 80 −3? + 4? ≥ 8 ? + 4? ≥ 40
a) Solve the above problem using the simplex method of
solution.
b) Comment on the nature of solution to the above problem and
hence, interpret your results