Create linear program to minimize transportation cost

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Reference no: EM13109884

A manufacturing company has two plants (plant A and plant B) and three stores (Store 1, Store 2, and Store 3). Plant A capacity is 80 units and Plant B capacity is 100 units. Store 1 demand is 60 units, Store 2 demand is 40, units and Store 3 demand is 70 units. Following are the transportation costs between each pair of locations

 

Store 1

Store 2

Store 3

Plan A

50

70

85

Plant B

93

88

65

a)      Draw problem transportation network.

b)      Build a linear program that minimizes transportation cost.

2.      A retail store has 3 locations in the same city. The manager wants to close one of the locations base on its productivity. Table below summarize monthly productivity information for the stores.

 

Store 1

Store 2

Store 3

Sales [$]

1,250,000

750,000

650,000

Number of employees

25

12

10

Average Salary per employee [$]

2,000

1,800

2,200

Rent [$]

30,000

20,000

18,000

Electricity and Water

20,000

19,500

25,000

a)      What facility needs to be closed based on labor productivity?

b)      What facility needs to be closed based on total productivity?

1. 3. Information below shows the reasons employees have been late during last month. Build a Pareto chart with frequencies in one axis and cumulative frequencies in the other. Provide recommendations

Cause For Late Coming

Occurrences

Road Traffic

8

Work till Late Night

70

Personal Commitments

88

Not Feeling Good

6

Late Public Transportation

4

Rain or Snow

23

Reference no: EM13109884

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