- Question 2 Hani Shipping Wishes To Ship A Product That Is Made At Two Different Factories To Three Different Warehouses 1 (78.97 KiB) Viewed 14 times
Question 2 Hani Shipping wishes to ship a product that is made at two different factories to three different warehouses. They produce 18 units at Factory A and 22 units at Factory B. They need 10 units in warehouse #1, 20 units in warehouse #2, and 10 units in warehouse # 3. Per unit transportation costs are shown in the table below. Warehouse Supply Factory 1 2 3 A $4 $2 $3 18 B $3 $2 $1 22 Demand 10 20 10 40 12:01 pm Page 2 of 4 BB207/BBS2293 Management Science (3 marks) (a) Identify whether the transportation problem is balanced or unbalanced. (b) Construct an initial solution for the above transportation problem using northwest (6 marks) comer rule (c) Assume that the demand at each warehouse is increased by 4 units. How many units should be shipped from each factory to each warehouse? Determine the optimal solution using Stepping-Stone method and the minimum total cost. (14 marks) (d) Does degeneracy occur in this problem? Explain. (2 marks) [Total: 25 Marks]