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The Verstech Corporation has decided to produce three new products. Five branch plants now have excess product capacity. The unit manufacturing cost of the first

The Verstech Corporation has decided to produce three new products. Five branch plants now
have excess product capacity. The unit manufacturing cost of the first product would be $41, $39,
$42, $38, and $39 in Plants 1,2,3,4, and 5, respectively. The unit manufacturing cost of the second
product would be $55, $51, $56, $52, and $53 in Plants 1,2,3,4, and 5, respectively. The unit
manufacturing cost of the third product would be $48, $45, and $50 in Plants 1,2, and 3,
respectively, whereas Plants 4 and 5 do not have the capability for producing this product. Sales
forecasts indicate that 700,1,000, and 900 units of products 1,2, and 3, respectively, should be
produced per day. Plants 1,2,3,4, and 5 have the capacity to produce 400,600,400,600, and 1,000
units daily respectively, regardless of the product or combination of products involved. Assume
that any plant having the capability and capacity to produce them can produce any combination
of the products in any quantity. Management wishes to know how to allocate the new products
to the plants to minimize total manufacturing cost.
(a) Formulate this problem as a transportation problem by constructing the appropriate
parameter table.
(b) Obtain an optimal solution.
Suppose that the sales forecasts have been revised downward to 280,400, and 350 units per day
of products 1,2, and 3, respectively, and that each plant now has the capacity to produce all that
is required of any one product. Therefore, management has decided that each new product
should be assigned to only one plant and that no plant should be assigned more than one product
(so that three plants are each to be assigned one product, and two plants are to be assigned none).
The objective is to make these assignments so as to minimize the total cost of producing these
amounts of the three products.
(c) Formulate this problem as an assignment problem by constructing the appropriate cost
table.
(d) Obtain an optimal solution.
(e) Reformulate this assignment problem as an equivalent transportation problem by
constructing the appropriate parameter table.
(f) Starting with Vogels approximation method, interactively apply the transportation
simplex method to solve the problem as formulated in part (c).
(g) From the context above, run both the transportation and assignment model R specifying
the packages employed and compare your optimal Suppose that the sales forecasts have been revised downward to 280,400, and 350 units per day
of products 1,2, and 3, respectively, and that each plant now has the capacity to produce all that
is required of any one product. Therefore, management has decided that each new product
should be assigned to only one plant and that no plant should be assigned more than one product
(so that three plants are each to be assigned one product, and two plants are to be assigned none).
The objective is to make these assignments so as to minimize the total cost of producing these
amounts of the three products.
(c) Formulate this problem as an assignment problem by constructing the appropriate cost
table.
(d) Obtain an optimal solution.
(e) Reformulate this assignment problem as an equivalent transportation problem by
constructing the appropriate parameter table.
(f) Starting with Vogels approximation method, interactively apply the transportation
simplex method to solve the problem as formulated in part (c).

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