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Projecta$10$12$940Projectb$4$5$750Projectc$11$8$660Plant Capacities705030150

John, the president of Hard Rock Concrete Company, needs to determine how to allocate concrete production across its three plants to three construction projects. The document provides the shipping costs per truckload from each plant to each project, the plant capacities, and the project requirements. Using the northwest corner rule as an initial solution, 40 truckloads are allocated from Plant 1 to Project A, 30 from Plant 1 to Project B, 20 from Plant 2 to Project B, and 30 each from Plant 2 to Project C and Plant 3 to Project C. The optimal solution is then found using the stepping-stone method, with a minimum total transportation cost of $1,040.

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Getu Weyessa
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46 views3 pages

Projecta$10$12$940Projectb$4$5$750Projectc$11$8$660Plant Capacities705030150

John, the president of Hard Rock Concrete Company, needs to determine how to allocate concrete production across its three plants to three construction projects. The document provides the shipping costs per truckload from each plant to each project, the plant capacities, and the project requirements. Using the northwest corner rule as an initial solution, 40 truckloads are allocated from Plant 1 to Project A, 30 from Plant 1 to Project B, 20 from Plant 2 to Project B, and 30 each from Plant 2 to Project C and Plant 3 to Project C. The optimal solution is then found using the stepping-stone method, with a minimum total transportation cost of $1,040.

Uploaded by

Getu Weyessa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Question

John, president of Hard rock Concrete Company, has plants in three locations and is currently working on
three major construction projects, located at different sites. The shipping cost per truckload of concrete,
plant capacities, and project requirements are provided in the following table.
\begin{matrix} & project A & project B & project C & plant \space capacities \\ plant 1 & \$10 & \$4 & \
$ 11 & 70\\ plant 2& \$12 & \$5 & \$ 8 & 50\\ plant 3 & \$9 & \$7 & \$6 & 30\\ Project \space
requirements & 40 & 50 & 60 & 150 \end{matrix}plant1plant2plant3Project requirements
projectA$10$12$940projectB$4$5$750projectC$11$8$660plant capacities705030150
A. Formulate an initial feasible solution to Hardrock’s transportation problem using the northwest corner
rule.
B. Find the optimal solution using stepping-stone method
Soution
A. Formulate an initial feasible solution to Hardrock’s transportation problem using the northwest corner
rule.

\begin{matrix} & project A & project B & project C & plant \space capacities \\ plant 1 & 10 & 4 & 11 &
70\\ plant 2& 12 & 5 & 8 & 50\\ plant 3 & 9 & 7 & 6 & 30\\ Project \space requirements & 40 & 50 & 60
& 150 \end{matrix}plant1plant2plant3Project requirementsprojectA1012940projectB45750
projectC118660plant capacities705030150

(I)The rim values for plant 1=70 and project A=40 are compared. The smaller of the two i.e. min(70,40)
= 40 is assigned to plant 1 project A
This meets the complete demand of project A and leaves 70 - 40=30 units with plant 1. (II)The rim values
for plant1=30 and project B=50 are compared.
The smaller of the two i.e. min(30,50) = 30 is assigned to plant1 project B This exhausts the capacity
of plant1 and leaves 50 - 30=20 units with project B (III)The rim values for plant2=50 and project B=20
are compared.
The smaller of the two i.e. min(50,20) = 20 is assigned to plant2 project B This meets the complete
demand of project B and leaves 50 - 20=30 units with plant2 (IV)The rim values for plant2=30
and project C=60 are compared.
The smaller of the two i.e. min(30,60) = 30 is assigned to plant2 project C This exhausts the capacity
of plant2 and leaves 60 - 30=30 units with project C (V)The rim values for plant3=30 and project C=30
are compared.
The smaller of the two i.e. min(30,30) = 30 is assigned to plant3 project C
Initial feasible solution is
\begin{matrix} & project A & project B & project C & plant \space capacities \\ plant 1 & 10(40) & 4(30)
& 11 & 70\\ plant 2& 12 & 5(20) & 8 (30)& 50\\ plant 3 & 9 & 7 & 6(30) & 30\\ Project \space
requirements & 40 & 50 & 60 & 150 \end{matrix}plant1plant2plant3Project requirements
projectA10(40)12940projectB4(30)5(20)750projectC118(30)6(30)60plant capacities705030150
The minimum total transportation cost =10×40+4×30+5×20+8×30+6×30=1040

Here, the number of allocated cells = 5 is equal to m + n - 1 = 3 + 3 - 1 = 5


∴ This solution is non-degenerate

B. Find the optimal solution using stepping-stone method


Iteration-1 of optimality test
1. Create closed loop for unoccupied cells, we get
\begin{matrix} Unoccupied cell & Closed path & Net cost change\\ C & C→ B→ B→ C & 11 - 4 + 5 -
8=4\\ A & A→ B→ B→ A & 12 - 5 + 4 - 10=1\\ A & A→ C→ C→ B→ B→ A & 9 - 6 + 8 - 5 + 4 -
10=0\\A B & B→ C→ C→ B & 7 - 6 + 8 - 5=4\\\end{matrix}UnoccupiedcellCAAAB
ClosedpathC→B→B→CA→B→B→AA→C→C→B→B→AB→C→C→B
Netcostchange11−4+5−8=412−5+4−10=19−6+8−5+4−10=07−6+8−5=4

Since all net cost change ≥0

So final optimal solution is arrived.


\begin{matrix} & project A & project B & project C & plant \space capacities \\ plant 1 & 10(40) & 4(30)
& 11 & 70\\ plant 2& 12 & 5(20) & 8 (30)& 50\\ plant 3 & 9 & 7 & 6(30) & 30\\ Project \space
requirements & 40 & 50 & 60 & 150 \end{matrix}plant1plant2plant3Project requirements
projectA10(40)12940projectB4(30)5(20)750projectC118(30)6(30)60plant capacities705030150

The minimum total transportation cost =10×40+4×30+5×20+8×30+6×30=1040

Notice alternate solution is available with unoccupied cell plant 3 project A=0, but with the same optimal
value
Xij=number of units shipped from Plant i  to Project j
Xij=number of units shipped from Plant i  to Project 

where
i = 1, 2, 3 with 1 = Plant 1, 2 = Plant 2, and 3 = Plant 3j = 1, 2, 3 with 1 = Project A, 2 = Project B, and 3 
= Project Ci = 1, 2, 3 with 1 = Plant 1, 2 = Plant 2, and 3 = Plant 3j = 1, 2, 3 with 1 = Project A, 2 = Projec
t B, and 3 = Project C
The linear programming formulation is

Minimize total cost=10X11+4X12+11X13+12X21+5X22+8X23+9X31+7X32+6X33Minimize total cost
=10X11+4X12+11X13+12X21+5X22+8X23+9X31+7X32+6X33

subject to

X11 + X21 + X31  =   40  (Project A requirements)X12 + X22 + X32  =   50  (Project B requirements)X13 
+ X23 + X33  =   60  (Project C requirements)X11 + X12 + X13 ≤ 70  (Plant 1 capacity)X21 + X22 + X23 
≤ 50  (Plant 2 capacity)X31 + X32 + X33 ≤ 30  (Plant 3 capacity)    All variables  ≥  0X11 + X21 + X31  = 
  40  (Project A requirements)X12 + X22 + X32  =   50  (Project B requirements)X13 + X23 + X33  =   60  
(Project C requirements)X11 + X12 + X13 ≤ 70  (Plant 1 capacity)X21 + X22 + X23 ≤ 50  (Plant 2 capacit
y)X31 + X32 + X33 ≤ 30  (Plant 3 capacity)    All variables  ≥  0

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