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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