solution
Manufacturer has two factories, located in Toronto and Winnipeg. Warehouses are located in Moncton, Montreal, and Calgary. Minimum requirements at the three warehouses are for at least 5 000, 8 000, and 7 000 units, respectively. The production capacities of the two factories are 9 000 and 13 000 units, respectively. Shipping costs per unit from each factory to each warehouse are given below:
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WAREHOUSE |
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|
Moncton |
Montreal |
Calgary |
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|
Toronto |
Sh.20 |
Sh.16 |
Sh.24 |
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|
FACTORY |
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|
Winnipeg |
Sh.29 |
Sh.6 |
Sh.9 |
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Required
The manufacturer wants to determine the optimal shipping schedule that will minimize transportation costs.
Required
- Formulate the linear programming model for this problem. [4 Marks]
- Generate initial solution using Vogel’s Approximation Method and the Least Cost Method [6 Marks]
- Test the solution for optimality generated using the stepping stone Method [ 10 Marks]
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