Operations and Production Management

MGMT 405

Answer set 4

MGMT 405 Operations and Production Management

Answer set 4
(Reference chapters 8 William J. Stevenson-2007, ninth edition)
Problems and Answers

1. Green Valley Milis produces carpet at plants in St. Louis and Richmond. The
carpet is then shipp to two outlets, located in Chicago and Atlanta. The cost per
ton of shipping carpet from each of th two plants to the two warehouses is as
follows:
To
From
Chicago Atlanta
St. louis
Richmond

$ 40
70

65
30

The plant at St. Louis can supply 250 tons of carpet per week; the plant at
Richmond can supply 400 ton per week. The Chicago outlet has a demand of
300 tons per week, and the outlet at Atlanta. dernands 350 tons per week. The
company wants to know the nunher of tons of carpet to ship from each plant to
each outlet in order to minimize the total shipping cost. Solve this transportation
problem.
Answer:
To
From
St. louis
Richmond
Demand

Chicago Atlanta
$ 40
70
300

65
30
350

Supply
250
400
650\650

2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.

Operations and Production Management

To
From
St. louis
Richmond
Demand
To
From
St. louis
Richmond
Demand

Chicago
$ 40
70
300
(30)
Chicago
$ 40
70
300
(30)

MGMT 405

Atlanta

Answer set 4

Supply

65
30
350
(35)

250 (25)
400 (40)

Atlanta

Supply

65
30 /350
350/350
(35)

250
(25)
400/350 (40)

Richmond Atlanta =350*30=10500

To
From
St. louis
Richmond
Demand

Chicago
$ 40
70/50
300/50
(30)

Supply
250 (25)
50/50 (40)

Richmond Chicago =50*70=3500

To
From

Chicago

St. louis

$ 40/250

Demand

250
(30)

Supply
250 (25)

St. louis Chicago =250*40=10000

Total= $ 24,000

2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.

Operations and Production Management

MGMT 405

Answer set 4

2. Given a transportation problem wth the following costs, supply, and demand,
find the optimal solution:

To
From
A
B
C
Demand

(Cost)
1
2
$6
7
$5
3
$8
5
135 175

To
From
A
B
C
Demand

(Cost)
1
2
$6
7
$ 5 3/175
$8
5
135 175
(1)
(2)

3
4
6
7
170

supply
100
180
200

3
4

supply
100
180
200
480\480

ANSWER:

6
7
170
(2)

(2)
(2)
(2)

B 2 =175*3 =525
To
From
A
B
C
Demand

(Cost)
1
$6
$5
$8
135
(1)

3
4/100
6
7
170
(2)

supply
100
5
200

(2)
(1)
(1)

A 3 =100*4 =400
To
From
B
C
Demand

(Cost)
1
5/5
130/ 8
130
(3)

3
6
7/70
70
(1)

supply
5
200

(1)
(1)

2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.

Operations and Production Management

MGMT 405

Answer set 4

B 1 =5*5 =25
C 1 =130*8 =1040
C 3 =70*7 =490
Total= 2,480

3. A plant has four operators to be assigned to four machines. The time

(minutes) required by each worker to produce a product on each machine
is shown in the following table:
Operator
1
2
3
4

Machine (min.)
A
B
C
10
12
9
5
10
7
12
14
13
8
15
11

D
11
8
11
9

Determine the optimal assignment and compute total minimum time.

ANSWER
10
5
12
8

12
10
14
15

9
7
13
11

11
8
11
9

Row and Column

1
0
1
0

0
2
0
4

0
2
2
3

2
3
0
1

2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.

Operations and Production Management

1
0
1
0

0
2
0
4

0
2
2
3

2
3
0
1

0
1
0
3

0
1
2
2

2
2
0
0

MGMT 405

Answer set 4

2
0
2
0
C1=9
A2=5
B3=14
D4=9

Total=37 minutes
4. The Omega pharmaceutical firm has five salespersons, whom the firm
wants to assign to five sales regions. Given their various previous
contacts, the salespersons are able to cover the regions in different
amounts of time. The amount of time (days) required by each salesperson
to cover each city is shown in the following table:
Region
Days
Sales
person

1
2
3
4
5

A
17
12
11
14
13

B
10
9
16
10
12

C
15
16
14
10
9

D
16
9
15
18
15

E
20
14
12
17
11

Which salesperson should be assigned to each region to minimize total

time? Identify the optimal assignments and compute total minimum time.

2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.

Operations and Production Management

MGMT 405

Answer set 4

Answer
Row reduction:
A
7
3
0
4
4

1
2
3
4
5

B
0
0
5
0
3

C
5
7
3
0
0

D
6
0
4
8
6

E
10
5
1
7
2

Coloumn reduction:
A
7
3
0
4
4
A
7
3
0
4
4

B
0
0
5
0
3
B
0
0
5
0
3

C
5
7
3
0
0

C
5
7
3
0
0
D
6
0
4
8
6

E
9
4
0
6
1

D
5
0
4
7
5

E
8
4
0
5
0

D
6
0
4
8
6

E
9
4
0
6
1

Final step is as follows:

A
6
3
0
4
3

B
0
1
6
0
3

C
5
8
4
0
0

B 1
C 4
A 3
D2
E 5
2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.

Operations and Production Management

MGMT 405

Answer set 4

Total= 51 days
5. A company supplies three project A, B, and C in three different towns.
Construction plant engineers of the company estimated weekly
requirement truckloads as 72, 102, and 41 respectively. These projects
can be supplied by the three plants 1, 2, and 3 with available amount of
truckloads 56, 82 and 77 respectively. Conducting North west corner
method:

A
1
2
3

Plant

Projec
t
B
C
4
8
16
24
8
16

8
16
24

(a) Determine the dispatch program between the projects and plants.
(b) Calculate individual cost
(c) Calculate total minimum cost
ANSWER:

A
Plant

requirement

1
2
3

Projec
t
B
C
4
8
16
24
8
16
72

102

Capaci
ty
8
16
24

56
82
77
215/2
41 15

Capaci
Project
ty
A
B
C
1 Apr-56
8
8
56
16/16
Plant
2 *
24/66**
16
82
16/36** 24/41***
3
8 *
*
77
215/2
requirement
72
102
41 15

2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.

Operations and Production Management

MGMT 405

Answer set 4

41-41=0- this is the final step.

2010/11, Sami Fethi, EMU, All Right Reserved, McGraw-Hill, 2007, 9. Ed.