Part 4. Bank Assignments. A bank distributes checks to different sites to be processed within a large metro area. Each site has the capacity to process different amounts of checks per day. The checks that need to be processed each day are personal, payroll, draft, and government. The total demand is different for each type of check. The cost to process each type of check varies with the site. These values are summarized in the table.

Cost per check	Site1	Site2	Site3	Site4	Site5	Total Demand Checks/day
Personal	2.55	2.35	3.22	2.85	2.25	700
Payroll	1.45	1.35	2.1	1.95	1.84	400
Draft	1.67	1.51	1.89	1.86	1.78	200
Government	1.34	1.35	1.41	1.3	1.33	100
Total Capacity Checks/day	500	300	300	200	200

Question 13. What is the minimum cost that can be achieved and meet requirements?

A. $2680 B. $2798 C. $2579 D. $2783 E. None of the above

Question 14. From concern about a site processing a large number of one type of check, a limit of 250 transactions per type of check for each site is being considered. What is the minimum increase in cost due to this added constraint? A. $20 B. $15 C. $10 D. $5 E. None of the above

Question 15. After the transaction limit was implemented for each site, the demand for payroll checks was increased to 900 checks/day which increased the total demand for all the checks beyond the total capacity. What is the minimum cost of processing as many checks as possible with the available capacity?

(Solution Note: The transaction limit does not apply to a dummy source.)

A. $2680 B. $2798 C. $2579 D. $2783 E. None of the above

Part 5. An international distribution company of containers with corporate offices in Manila has been expanding operations that service customers between the Asian continent and the North American continent over the past four years. Liann Able, VP of logistics, has called a planning meeting to discuss possible modifications to shipping schedules because of recent changes in operations. The initial motivation for the meeting is increases in the unit shipping costs due to a series of monetary adjustments within the different countries. The unit costs of shipping from each source warehouse to each destination site, the capacity (in thousands) of the warehouses, and the demand (in thousands) of the destination sites are given in the table.

.	Unit	Destinations
	Costs	Tokyo	Shanghai	Hong Kong	Capacity
Sources	Los Angeles	$42.00	$40.00	$41.00	900
	Vancouver	$36.00	$37.00	$39.00	700
	Demand	480	440	520

Question 16. Before the meeting, Liann sends the information to you and asks you to bring an optimal shipping plan to the meeting and be ready to respond to inquiries during the meeting. What is the total cost of the optimal shipping plan you bring to the meeting?

A. $49570 B. $49780 C. $49860 D. $49360 E. None of the above

Question 17. During the meeting, a subcommittee assigned to review any changes in the warehouses capacity reported that Vancouver just increased its capacity by 10% but added, That should not be a problem since we will have more capacity than before. So, our shipping plan and shipping cost should not be affected. Liann counters, Not necessarily. Increased capacity could change shipping schedules which may lower costs. But we need to make sure. Liann turns to you and asks you to determine if there will be a decrease in total cost when the demand for Vancouver is increased by 10%. What is the decrease in total cost of the optimal shipping plan after the 10% increase in Vancouvers capacity?

A. $80 B. $310 C. $210 D. $290 E. None of the above

Question 18. Toward the end of the meeting, Liann addressed the group, Recently, I was asked by Tokyo if they could receive all their shipments from Vancouver. About the same time, Shanghai asked if all their shipments could come from Los Angeles. Initially, I indicated that it would be difficult for us to accommodate these types of special requests, thinking that it would be too costly. But now, since Vancouver has increased its capacity by 10%, the increase in cost may not be that great. Liann then turned to you and asked, Compared with our optimal shipping plan based on the 10% increase in Vancouvers capacity, what would be the minimum increase in cost of the shipping plan that satisfies the demands of Tokyo, Shanghai, and Hong Kong and accommodates the requests of both Tokyo and Shanghai?

A. $80 B. $310 C. $210 D. $290 E. None of the above