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EXAMPLE 3.7-1 f32 A company has sevenl manufacturing units situated in different parts of the country. Due to recession it is proposed to close four of these and to concentrate production in the remaining three units. Production in these units will actually be increased from present levels and would require an increase in the personnel employed in them. Personnel at the closed units expressed their desire for moving to any one of the remaining units and the company is willing to provide them removal (transfer) costs. The retraining expenses would have to be incurred as the technology in these units are different. Not all existing personnel can be absorbed by transfer and a number of redundancies will arise, cost of redundancy is given as a general figure at each unit closed. A B D No. employed 200 400 300 200 (These units A, B, C and D are to be closed) Retraining costs in 000 person A B D Transfer to E 0.5 0.4 0.6 0.3 F 0.6 0.4 0.6 G 0.5 0.3 0.7 0.3 Removal costs in '000/person B D Transfer to E 2.5 3.6 3.4 4.7 F 2.4 4.6 3.4 1.7 G 2.5 2.7 3.3 2.7 Redundancy payments in A B D 3 000 person 5.0 6.0 7.0 Additional personnel required at units E F G Required 350 450 200 6) Obtain a solution to the problem of the cheapest means to transfer personnel from units closed to those units which will be expanded. 0.3 6.0 (ii) State with reason whether or not the solution obtained is optimal and unique. (in) State the costs of the initial and final solutions. [L.C.W.A., 1990; 1.C.M.A., 1990)