TP Problems-In Class Exercises.

PRACTICE QUESTIONS > TP Problems-In Class Exercises.

Anna University, Chennai MBA NA 1. A manufacturing company has three factories F1, F2 and F3 with monthly manufacturing capacities of 7000, 4000 and 10,000 units of a product. The product is to be supplied to seven stores. The manufacturing costs in these factories are slightly different but the important factor is the shipping cost from each factor ...[Show More]

Anna University, Chennai
MBA NA
1. A manufacturing company has three factories F1, F2 and F3 with monthly manufacturing capacities of

7000, 4000 and 10,000 units of a product. The product is to be supplied to seven stores. The

manufacturing costs in these factories are slightly different but the important factor is the shipping cost

from each factory to a particular store. The following table represents the factory capacities, store

requirements and unit cost (in rupees) of shipping from each factory to each store. Here, slack is the

difference between the total capacity and the total requirement. Find the optimal transportation plan so

as to minimize the transportation cost.

Factory

Stores Factory

S1 S2 S3 S4 S5 S6 S7 capacity

F1 5 6 4 3 7 5 4 7000

F2 9 4 3 4 3 2 1 4000

F3 8 4 2 5 4 8 3 10000

Store

demand

1500 2000 4500 4000 2500 3500 3000

2. A company has received a contract to supply gravel for three new construction projects located in towns

A, B and C. Construction engineers have estimated the required amounts of gravel which will be needed

at these construction projects as shown below.

Project location Weekly requirement (truck loads)

A 72

B 102

C 41

The company has three gravel plants X, Y and Z located in three different towns. The gravel required

by the construction projects can be supplied by these three plants. The amount of gravel which can be

supplied by each plant is as follows.

Plant Amount available/week (truck loads)

X 76

Y 62

Z 77

The company has computed the delivery cost from each plant to each project site. These costs (in

rupees) are shown in the following table.

Plant

Cost per truck load

A B C

X 4 8 8

Y 16 24 16

Z 8 16 35

(a) Schedule the shipment from each plant to each project in such a manner so as to minimize the total

transportation cost within the constraints imposed by plant capacities and project requirements.

(b) Find the minimum cost.