A. An Electrical Company has three workshops in Koforidua, Accra and Kumasi. These workshops produce the following quantities of electric fan.

Workshops

Koforidua Accra Kumasi

Monthly production (units)

130 70 100

The monthly demand for these fans in three towns: Sunyani, Cape Coast and Ho is given below:

Destination

Sunyani

Cape Coast

Ho

Weekly Demand (units)

80 110

60

The unit transportation costs per unit (in GH000) from the

sources to the destinations are as shown:

To

From

Koforidua Accra Kumasi

Sunyani Cape Coast Ho 9 14 12

11 10 6 12 8 15

7

(i) Using practical examples from the field of business compare and contrast the concept of balance and unbalance transportation problem. Illustrate your understanding of these concepts by discussing and explaining possible four reasons for balance or unbalance transportation problem using a practical case in industry.

(ii) Formulate a linear programming (LP) model.

B. The model in (A) was solved using Solver and part of the Solver output is shown below. Use it to answer the questions that follow.

AN(5marks)

CR(10 marks)

Adjustable Cells

Original Cell Name Value

$C$4 Koforidua Sunyani 80 $D$

4 Koforidua Cape Coast 0 $E$4 Koforidua Ho 0 $C$5 Accra Sunyani 0 $D$

5 Accra Cape Coast 10 $E$5 Accra Ho 60 $C$6 Kumasi Sunyani 0 $D$

6 Kumasi Cape Coast 100 $E$6 Kumasi Ho 0

Final Value

80

0 0 0

10 60 0

100 0

(i). As a management, science student the MD of the company seeks your expert advice on ways in which to determine the optimal transportation rule. Advise the MD, providing detailed explanation using the table above. Write your answer in a form of a report to the MD.