3) A matrix of supply and demand is shown here.
Supply
20
30
50
Demand 10 10 10 20 50 100
Use the Northwest Corner method to assign shipments for the first feasible solution. You will note that a twofold problem is encountered.
a. What are these conditions called?
b. What can be done about them?
To use QMpom Aggregate Scheduling Models (transportation) enter supply and demand as indicated and enter all cost data as 1. Click Northwest Corner Rule. The QMpom System will provide the NWC allocations and information about the special condition of this problem.
10) The cost of improving plant layout is $100,000 to be depreciated over a 5 year period. The estimated annual improvements in profit are $6,000 from better quality, $4,000 from higher productivity, and $11,000 from health benefits. Is the layout improvement recommended?
Using the QMpom module called Capacity Management Models (Breakeven) will facilitate solving problem 10
11) The cost of improving office layout is $27,000 to be treated as a one-time expense. The office manager does not have any way of estimating improved profits resulting from quality changes but says that the new layout will save time and miles of walking for the 40 office employees. She estimates that the new layout will cut the amount of walking for the average employee by 100 miles per year. How much will the layout improvement be worth?