• March 20, 2016
• 0

Stat 279 Operations Research

Problem 1.

Nanaq Europe-

Regions                       Electric motors

Gaydon (UK)                          140,000

Rouen (France)                       130,000

Dresden (Germany)                160,000

Nanaq International

Regions                                   Refrigerators.

Jung (Sweden)                                                130,000

Reynosa (Mexico)                               120,000

Pohang (South Korea)                                    145,000

East Tamaki (New Zealand)               25,000

 Supplied by Nanuq Europe To Nanaq International Supply(SS) Jung Reynosa Pohang East Tamaki Gaydon 80 240 180 280 780 Rouen 40 210 200 320 770 Dresden 20 250 140 200 610 Demand(DD) 140 700 520 800 2160

Total demand for motors.

DD=140 + 700+520+800= 2,160 motors

1. Total supply for motors.

SS= 780+770 +610 = 2,160 motors.

1. Use LCM (Least cost method) to construct a transportation tableau.

Identify the least cost in the whole table.

 No Supplier Destination Cost (Euros) Allocation 1. Dresden Jung 20 140 2. Dresden Pohang 140 470 3. Gaydon Pohang 180 50 4. Rouen Reynosa 210 700 5. Gaydon East Tamaki 280 730 6. Rouen East Tamaki 320 70

Transportation Tableau.

 Supplied by Nanuq Europe To Nanaq International Supply(SS) Jung Reynosa Pohang East Tamaki Gaydon 0 0 180 280 780 Rouen 0 210 0 320 770 Dresden 20 0 140 0 610 Demand(DD) 140 700 520 800 2160

Transportation cost tableau.

 Unit cost (Q) Allocation (C) Total Cost \$ (C*Q) Euros 20 140 2,800 140 470 65,800 180 50 9,000 210 700 147,000 280 730 204,400 320 70 22,400 ∑C = 1,150 ∑Q = 2,160 ∑TC = 451,400

Interpret the starting solution from the least cost method.

Total minimum cost:

(140*20) + (470*140) + (50*180) + (700 * 210) + (730* 280)+ (70*320)

= 451,400Euros.

Using the Least cost method to solve the transportation problem, it can be concluded that to obtain the minimum cost of transporting to Nanuq International, it will cost \$ 451,400 and the supplies should originate from the suppliers in Europe as indicated by the tableau above. It will have to transport a total of 2,160 electric motors.

1. Obtain the optimal solution using excel. Cut and paste the excel output into word document and interpret the solution.

Conclusion:

• 140 Electric motors should be transported from Rouen to Jung.
• 70 Electric motors should be transported from Gaydon to Reynosa
• 630 Electric motors should be transported from Rouen to Reynosa
• 190 Electric motors should be transported from Gaydon to East Tamaki
• 610 Electric motors should be transported from Dresden to East Tamaki.

Excel:

1. According to excel, the total cost is 423, 500

Problem 2.

Calculate the total cost according to the excel solution. Also comment on any excess supply or demand.

According to excel solution, the Total minimum cost is \$ 167,000

According to excel, the following persons should be assigned the following projects;

 Person Assigned Work Project. Mary 2 Elizabeth 4 Steven 1 Joshua 3

REFERENCE LIST.

1. Mokhtar S. B., John, J. J., &Hanif, D. S. (2011). Linear Programming and Network Flows (3rd). Hoboken, New Jersey: John Wiley & Sons Inc.

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