Homework Assignment TRANSPORTATION ALGORITHM Finnish Furniture - PowerPoint PPT Presentation

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Homework Assignment TRANSPORTATION ALGORITHM Finnish Furniture

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  1. Homework Assignment TRANSPORTATION ALGORITHM Finnish Furniture Due October 16th ! MGMT E - 5065 Operations and Logistics Management

  2. Finnish Furniture Finnish Furniture manufactures tables in facilities located in 3 cities - Reno, Denver, and Pittsburgh. The tables are then shipped to 3 retail stores loca- ted in Phoenix, Cleveland, and Chicago. Management wishes to develop a distribution sche- dule that will meet the demands at the lowest possi- ble cost. The shipping cost per unit from each of the sources to each of the destinations is shown in the following table:

  3. Finnish Furniture The available supplies are: 120 units from Reno 200 units from Denver 160 units from Pittsburgh The store demands are; 140 units from Phoenix 160 units from Cleveland 180 units from Chicago • REQUIREMENT: • How many units should be • shipped from each facility • to each of the retail stores • if cost is to be minimized? • 2. What is the total cost?

  4. Finnish Furniture • Finnish Furniture has experienced a decrease in the • demand for tables in Chicago; demand has fallen to • 150 units. • REQUIREMENT: • What special condition would exist? • What is the minimum cost solution? • Will there be any units remaining at any of the • manufacturing facilities?