Calculate the production capacity of plants


Assignment:

Transportation The West Company produces lawn-mower blades in three cities-Tucson, St Louis and Omaha. The production capacity of each plant is indicated below. These plants supply lawn mowers to markets in five cities, which have the demands, also indicated below. The following shipping cost for each route has also been determined, below. Production capacity of plants.

PLANT

PRODUCTION

A. Tucson

400

B.   St Louis

300

C.  Omaha

600

Markets in five cities and their demand

MARKET

DEMAND

1.            

Iowa City

140

2.            

Denver

300

 3.

Tulsa

180

4.            

Dallas

225

5.            

San Diego

80

Shipping cost for each route

From

To

1

2

3

4

5

A

$18

$16

$13

S6

S3

B

16

12

9

2

6

C

8

10

11

12

16

Required:

Derive an intial solution that would result in a low cost shipping plan, using

a. The minimum cell cost method

b. Vogal's approaximation method

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Operation Management: Calculate the production capacity of plants
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