Better Products (Assigning Plants to Products) The Better Products Company has decided to initiate the product of four new products, using three plants that currently have excess capacity. Unit Cost Сарacity Product: 1 2 3 4 Available Plant 1 $41 $27 $28 $24 75 2 40 29 23 75 3 37 30 27 21 45 Required production 20 30 30 40 Question: Which plants should produce which products?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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BETTER PRODUCTS COMPANY has decided to start manufacturing four new products in three plants that currently have excess production capacity. The products require comparable production effort per unit, so the available production capacity in the plants is measured by the number of units of any product that can be manufactured per day.

a)Formulate this problem as a transportation problem by constructing the appropriate parameter table.

I already have an optimal solution (it's from the book). (I dont understand)
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OPTIMAL SOLUTION:
It has basic variables (assignments) X₁₂ = 30, X₁₃ = 30, X₁₅ = 15, X₂₄ = 15, X₂₅ = 60, X₃₁ = 20 and X₃₄ = 25, so that:

Plant 1 produces all of products 2 and 3.
Plant 2 produces 37.5% of product 4.
Plant 3 produces 62.5% of product 4 and all of product 1.


The total cost of Z = $3 260 per day.
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Instructions:
Please explain this solution to me, I do not understand it, I don't know where those numbers came from.

I want you to explain me in a simple way how that optimal solution was, I don't understand it.

Explain to me the optimal solution that I just posted above.

 
 
Very important:
(Explain with words)
Better Products (Assigning Plants to
Products)
The Better Products Company has decided to initiate the product of four new
products, using three plants that currently have excess capacity.
Unit Cost
Сараcity
Product:
1
3
4
Available
Plant
1
$41
$27
$28
$24
75
40
29
23
75
3
37
30
27
21
45
Required production
20
30
30
40
Question: Which plants should produce which products?
Transcribed Image Text:Better Products (Assigning Plants to Products) The Better Products Company has decided to initiate the product of four new products, using three plants that currently have excess capacity. Unit Cost Сараcity Product: 1 3 4 Available Plant 1 $41 $27 $28 $24 75 40 29 23 75 3 37 30 27 21 45 Required production 20 30 30 40 Question: Which plants should produce which products?
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