finnish furniture transportation algorithm homework solution strategic resource allocation and...
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Finnish FurnitureFinnish FurnitureTRANSPORTATION ALGORITHM
Homework Solution
STRATEGICRESOURCE
ALLOCATIONand
PLANNING
MGMT E-5050
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Finnish FurnitureFinnish Furniture
Finnish Furniture manufactures tables in facilities located in 3 cities - Reno, Denver, and Pittsburgh. The tables are then shipped to 3 retail stores loca- ted in Phoenix, Cleveland, and Chicago. Management wishes to develop a distribution sche- dule that will meet the demands at the lowest possi- ble cost. The shipping cost per unit from each of the sources to each of the destinations is shown in the following table:
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Finnish FurnitureFinnish Furniturefrom / to Phoenix Cleveland Chicago
Reno 10 16 19
Denver 12 14 13
Pittsburgh 18 12 12
The available supplies are: 120 units from Reno 200 units from Denver 160 units from Pittsburgh
The store demands are;
140 units from Phoenix160 units from Cleveland180 units from Chicago
REQUIREMENT:
1. How many units should be shipped from each facility to each of the retail stores if cost is to be minimized?
2. What is the total cost?
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Finnish FurnitureFinnish Furniture
Finnish Furniture has experienced a decrease in thedemand for tables in Chicago; demand has fallen to150 units.
REQUIREMENT:
1. What special condition would exist?
2. What is the minimum cost solution?
3. Will there be any units remaining at any of the manufacturing facilities?
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