Determine the production capacity of plants


Assignment:

Question: 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

$6

$3

B

16

12

9

2

6

C

8

10

11

12

16

Required: a) Derive an initial solution that would result in a low cost shipping plan, using

The minimum cell cost method

Vogel's approximation method

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Operation Management: Determine the production capacity of plants
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