The management of the Executive Furniture Corporationdecided to expand the production capacity at its Des Moines factory and to cut back production at its other factories. It also recognizes a shifting market for its desks and revises the requirements at its three warehouses.

(a) Use the northwest corner rule to establish an initialfeasible shipping schedule and calculate its cost.

(b) Use the stepping-stone method to test whether an improved solution is possible.

(c) Explain the meaning and implications of animprovement index that is equal to 0. What decisionsmight management make with this information? Exactly how is the final solution affected?

 

 

 

Question 3 data

NEW WAREHOUSE REQUIREMENTS NEW FACTORY CAPACITIES Albuquerque (A) 200 desks Des Moines (D) 300 desks Boston (B) 200 desks Evansville (E) 150 desks Cleveland (C) 300 desks Fort Lauderdale (F) 250 desks