Quantitative Business Analysis: Transportation and Assignment

Requirements: Use the list of formulae given and include all workings.

List of Formulae

Question 1

Question 2

Question 3

*Use all method only if it applicable and show the workings.

MODI Cost Values, C, = R, +K 5. MODI Improvement Index, 1. = C, -R, -K Question 4 The manager of Motivation Training Agency is assigning four different facilitators to handle four different programs. These facilitators would be paid at different rates per hour according to the type of program and their experience. The costs (RM) of assigning the facilitators are shown in the following table. Advice the manager how to make the optimal assignment and calculate the minimum total cost. Facilitators Azmi Deeno Fozee Musa 1 210 100 175 80 Program 2 3 90 180 70 130 105 140 65 105 4 160 200 170 120 (5 marks) Question 5 Explain briefly how to identify the following special problems in transportation. a) Unbalanced transportation problem (2 marks) b) Degeneracy (2 marks) c) More than one optimal solution (1 marks) Question 6 Ammara Clothing Group owns factories in three locations (A, B and C), which distribute to three boutiques in three cities (X, Y and Z). The following table shows the shipping costs per unit (RM) and the number of supply and demand. Supply Factory A B Demand 6 5 8 135 Boutiques Y 7 3 5 170 Z 4 6 7 170 100 180 200 a) Find the initial solution. (3 marks) b) Determine an optimal solution and the total minimum cost for this problem. (You can continue the calculation from the above tableau) (10 marks) c) Determine the factory with surplus and unit surplus. (2 marks)