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. In your own words, write a clear, concise statement of the problem
B. Is this a balanced or unbalanced problem. Explain why?
C. Using the northwest corner method, what numbers do you assign for the initial solution for each of the 9 origin/destination combinations:
Des Moines (D) to Albequerque (A)
Des Moines (D) to Boston (B)
Des Moines (D) to Cleveland (C)
Evansville (E) to Albequereque (A)
Evansville (E) to Boston (B)
Evansville (E) to Cleveland (C)
Ft. Lauderdale (F) to Albequerque (A)
Ft. Lauderdale (F) to Boston (B)
Ft. Lauderdale (F) to Cleveland (C)
D. After using the northwest corner rule, what is the cost of the initial feasible shipping schedule?
This posting provides formulation and solution of transporation and assignment models for expansion of production capacity at its Des Moines factory and to cut back production at its existing factories using the northwest corner method and also provides initial feasible shipping scheduling.