The management of the Executive Furniture Corporation decided to expand the production capacity at its Des Moines factory and to cut back production at its factories. It also recognizes a shifting market for its desks and revises the requirements at its three warehouses.
Data for Problem:
New Warehouse Requirements New Factory Capacities
Albequerque (A) 200 desks
Boston (B) 200 desks
Cleveland (C) 300 desks
Des Moines (D) 300 desks
Evansville (E) 150 desks
Ft. Lauderdale (F) 250 desks
To Albequerque Boston Cleveland
Des Moines (5) (4) (3)
Evansville (8) (4) (3)
Ft. Lauderdale (9) (7) (5)
A.Using the stepping stone method to compute improvement indices for the four empty cells. Write those formulas for this question.
B. One improvement index is equal to zero. What is the implication of this?
C. With the results of your computed improvement indices, is an improved solution posible? Why or why not?
This posting provides formulation and solution to transportation and assignment models at Executive Furniture Corporation for expansion of Des Moines factory from current warehouses using stepping stone method and provides calculation of improvement indices and its implications.