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Suppose that a firm has three factories / sources of supply / & four warehouses /point of demand/. The firm's production capacity at the three
- Suppose that a firm has three factories /sources of supply/ & four warehouses /point of demand/. The firm's production capacity at the three factories, the demand for the four destination centers located at various regions & the cost of shipping each unit from the factories to the warehouses through each route is given as follows:
Destinations
| W1 | W2 | W3 | W4 | Factory Capacity | |
| F1 | 3 | 2 | 7 | 6 | 5000 |
| F2 | 7 | 5 | 2 | 3 | 6000 |
| F3 | 2 | 5 | 4 | 5 | 2500 |
| Demand | 6000 | 4000 | 2000 | 1500 | 13500 |
Required:
- Develop an initial feasible solution using VAM & compute the total cost.
- Determine its optimality using MODI method
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Essentials Of Strategic Management
Authors: J. Hunger, Thomas Wheelen
5th Edition
0136006698, 9788120348615
