Answer Happy

1. You have just been appointed as an Industrial Engineer in a manufacturing industry and the management gives you the following responsibilities in Table 1 below as your first task, to set the following problem up in transportation format and solve for the minimum cost plan, using Excel of the QM software. Note: do not do this manually [32] Table 1: Period, Capacity and Cost Information Period Feb Mar Apr Demand 55 70 75 Capacity Regular 50 50 50 Overtime 5 5 5 Subcontract 12 12 10 Beginning Inventory 10 Costs Regular time $60 per unit Overtime $80 per unit Subcontract $90 per unit Inventory carrying cost $1 per unit per month Back order cost $3 per unit per month EBPEN2A/EBPWA2C GA ASSIGNMENT 2021_2 Page 4 of 6 2. A foundry company has 3 plants that supply light and heavy steel castings to 4 different types of industries in South Africa. The associated supply (in tonnes) from each plant and demand of each industry is given in Table 2 below. The cost (in Rands) of sending a tonne of steel from a plant to the delivery location of each industry depends on the distance the steel castings must travel. Formulate the LP to minimize the cost of meeting each industry's peak steel demand. Solve with the Simplex Method, using Excel Solver. Note: do not do this manually [34] Table 1: Supply and Demand Information From Plant 1 Plant 2 Plant 3 Demand Agriculture 128 144 224 90 Aircrafts 96 192 144 40 TO Automobile Mining 160 144 208 112 256 80 60 60 Supply 70 100 80