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7) (13 points) Qatar Steel Company manufacturers parts in two plants; Plant A and Plant B. They have orders from three customers (Companies) for May
7) (13 points) Qatar Steel Company manufacturers parts in two plants; Plant A and Plant B. They have orders from three customers (Companies) for May and June as tabled below. The per-unit shipping costs to the customers are also provided below. Shipping Costs 1 220 Company 2 330 May 390 From A From B 1 $44 $33 $28 $38 June 430 500 360 $22 The production capacity of Qatar Steel Company is R1 units a month at each of its two plants. It has R2 units in the inventory at Plant A and R3 units at Plant B. Qatar Steel Company is willing to run its inventory to zero if necessary. Units can be delivered early but not late. In case Qatar Steel Company cannot meet the demand of customers, it has a contract to buy the items from Best Metals Inc. for $R4 a piece which includes delivery to any of the three customers. How should Qatar Steel Company schedule its production to meet all demands while minimizing the sum of the shipping costs and the possible cost of buying from Best Metals Inc.? Determine only the initial transportation tableau. 7) (13 points) Qatar Steel Company manufacturers parts in two plants; Plant A and Plant B. They have orders from three customers (Companies) for May and June as tabled below. The per-unit shipping costs to the customers are also provided below. Shipping Costs 1 220 Company 2 330 May 390 From A From B 1 $44 $33 $28 $38 June 430 500 360 $22 The production capacity of Qatar Steel Company is R1 units a month at each of its two plants. It has R2 units in the inventory at Plant A and R3 units at Plant B. Qatar Steel Company is willing to run its inventory to zero if necessary. Units can be delivered early but not late. In case Qatar Steel Company cannot meet the demand of customers, it has a contract to buy the items from Best Metals Inc. for $R4 a piece which includes delivery to any of the three customers. How should Qatar Steel Company schedule its production to meet all demands while minimizing the sum of the shipping costs and the possible cost of buying from Best Metals Inc.? Determine only the initial transportation tableau
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