QUESTIONCanning Transport is to move goods from three factories (origins) to three distribution centers(destinations). Information about the move is given below. Solve the problem using thetransportation simplex method and compute the optimal total shipping cost.OriginSupplyA200B100C150DestinationDemandX50Y125Z125Shipping costsDestinationOriginXYZA325B910C564(Source B cannot ship to destination Z)Hint:1: Check if dummy row/column is needed2: Assign "M" if the shipping cannot done3: Develop the transportation tableau4: Phase I: Use MINIMUM COST METHOD to find the initial feasible solution5: Check if the problem degenerate or not (if so add artificial cell, if not proceed to Phase II)6: Perform MODI METHOD and STEPPING STONE METHOD to find the optimal solution

Solution:- Given data: Origin-Supply Destination-Demand Shipping costs Let: xij = Quantity shipped…

Canning Transport is to move goods from three factories (origins) to three distribution centers (destinations). Information about the move is given below. Solve the problem using the transportation simplex method and compute the optimal total shipping cost. Origin Supply 200 100 C 150 Destination Demand X 50 Y 125 Z 125 Shipping costs Destination Origin X Y A 3 2 B 9 10 - C 5 6 4 (Source B cannot ship to destination Z) Hint: 1: Check if dummy row/column is needed 2: Assign "M" if the shipping cannot done 3: Develop the transportation tableau 4: Phase 1: Use MINIMUM COST METHOD to find the initial feasible solution 5: Check if the problem degenerate or not (if so add artificial cell, if not proceed to Phase II) 6: Perform MODI METHOD and STEPPING STONE METHOD to find the optimal solution AB NS Z 5

Canning Transport is to move goods from three factories (origins) to three distribution centers (destinations). Information about the move is given below. Solve the problem using the transportation simplex method and compute the optimal total shipping cost. Origin Supply 200 100 C 150 Destination Demand X 50 Y 125 Z 125 Shipping costs Destination Origin X Y A 3 2 B 9 10 - C 5 6 4 (Source B cannot ship to destination Z) Hint: 1: Check if dummy row/column is needed 2: Assign "M" if the shipping cannot done 3: Develop the transportation tableau 4: Phase 1: Use MINIMUM COST METHOD to find the initial feasible solution 5: Check if the problem degenerate or not (if so add artificial cell, if not proceed to Phase II) 6: Perform MODI METHOD and STEPPING STONE METHOD to find the optimal solution AB NS Z 5

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 2.1CE

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