finnish furniture transportation algorithm homework solution strategic resource allocation and...
TRANSCRIPT
Finnish FurnitureFinnish FurnitureTRANSPORTATION ALGORITHM
Homework Solution
STRATEGICRESOURCE
ALLOCATIONand
PLANNING
MGMT E-5050
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:
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?
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?