OISCUSSION QUESTIONS ANO PROBLEMS 381

· In olving a facility location problern in which there are 10. In an assignment problem, it may be nece sary to add
twopossible locations being considered, the more than one row to the table.
transportation algorithm may be used. In doing thi , a. True
3. two rows (sources) would be added to the existing b. False
row and the enla.rged problem would be solved. 11. When using the Hungarian method, an optimal
b. two separate transportation problems would be solved. assignment can always be made when every row and
c. co ts of zero would be used for each of the new facilities. every column has at least one zero.
d. the problem would be a tran shiprnent problem. a. True
9. The Hungarian method is b. False
a. a way to develop an initial olution to a transportation 12. An as ignment problem can be viewed as a special type
problem. of transportation problem with which of the foUowing
b. u ed to solve assignment problems. features?
c. also called Vogel's approximation method. a. the capacity for each source and the demand for each
d. only u ed for problem in which the objective is to destination is equal to one
maxirnize profit.
b. the number of rows is equal to the number of columns
c. the co t for each shipping route is equal to one
d. all of the above

lscusslon Questions and Problems

íscussion Questions 9-8 How could an a ignment problem be sol ved using
9-1 1 the tran portation model an example of decision the transportation approach? What condition will
making under certainty or decision making under make the solution of this problem difficult?
uncertainty? Why? 9-9 You are the plant supervisor and are responsible for
9-2 Explain how to determine the number of variables scheduling workers to job on hand. After estimat-
and constraint that would be in a transportation ing the co t of a signing each of five available work-
problem simply by knowing the number of sources er in your plant to five projects that must be
and the number of destination . completed immediately, you solve the problem us-
9-3 What is a bafanced tran portation problem? Describe ing the Hungarian method, The following solution is
the approach you would use to olve an unbalanced reached and you post these job assignments:
problem. Jones to project A
9-4 The tepping-stone method i being u ed to olve a Smith to project B
tran portation problem. The smallest quantity in a Thomas to project e
cell with a minus sign i 35, but two different cells
Gibb to project D
with minu ign have 35 unit in them. What prob-
lem will this cause, and how should thi difficulty be Heldrnan to project E
resolved? The optimal cost was found to be $492 for these as-
9-5 The tepping-stone method i being used to olve a signments. The plant general manager inspects you.r
transportation problem. There is only one empty cell original co t estimates and informs you that in-
having a negative improvement index, and thi index creased employee benefits mean that each of the
is -2. The stepping-stone path for thi cell indicate 25 numbers in your cost table is too low by $5. He
that the smalle t quantity for the cells with minus suggests that you immediately rework the problem
sign i 80 units. If the total co t for the current and post the new a signments.
olution i $900, what will tbe total co t be for the im- r thi necessary? Why? What will the new optimal
proved solution? What can you conclude about how cost be?
much the total cost will decrea e when developing 9-10 Sue Simmons's marketing research firm has local
each new solution for any transportation problem? representatives in all but five states. She decides to
9-6 Explain what happens when the olution to a tran - expand to cover the whole United States by transfer-
portation problem does not have m + 11 - 1 occu- ring five experienced volunteers from their current
pied quares (where In = number of row in the locations to new offices in each of the five states.
table and n = number of columns in the table). Sirnrnons's goal is to relocate the five representa-
9-7 What is the enumeration approach to solving assign- tives at the lea. t total co t. Consequently, he sets up
rnent problems? Is it a practical way to sol ve a 5 row X a 5 X 5 relocation cost table and prepare to solve it
5 column problem? a 7 X 7 problem? Why? for the best a signments by use of the Hungarian
382 CHAPTER 9 • TRANSPORTATION AND ASSIGNMENT MODELS

method. At the last mornent, Sirnmons recal! that (e) Explain the meaning and implications of an
although the first four volunteers did not pose any irnprovernenr index that is equal to O. What deci-
objection to being placed in any of the five new sions might managernent make with this informa-
citie , the fifth volunteer did make one re triction. tion? Exactly how i the final solution affected?
That person absolutely refused to be assigned to the 2: 9-12 Forrnulate the transportation problem in Problern 9-11
new office in Tallaha ee, Florida-fear of southern as a linear prograrn and solve using cornputer soft-
roache , the repre entative claimed! How should ware.
Sue alter the cost matrix to ensure that thi assign- 2: 9-13 The Hardrock Concrete Cornpany has plants in three
ment is not included in the optirnal olution? locations and is currently working on three major
construction projects, each located at a different site.
Problems* The shipping cost per truckload of concrete, daily
plant capacities, and daily project requirements are
2. 9-11 The managernent of the Executive Furniture Corpo-
provided in the table below.
ration decided to expand the production capacity at
(a) Forrnulate an initial feasible solution ro Hard-
it De Moines factory and to cut back production al
rock's transportation problern using the north-
it other factorie . It also recognizes a hifting mar-
west comer rule. Then evaluate each unused
ket for its de k and revises the requirernents at its
shipping route by cornputing all improvernent
three warehouses. :~
indices. Is thi solution optimal? Why?
(a) Use the northwe t comer rule to e tabli h an ini-
(b) Js there more than one optirnal solution lo thi
tial feasible shipping schedule and caIculate its
cost. problern? Why?
(b) U e the tepping-stone method to test whether
an irnproved solution i pos ible.

Data for Problem 9-11

NEW WAREHOUSE
REQUlREME TS NEW FACTORY CAPACITlES
.
2./ ,

Albuquerque (A) 200 desks Des Moines (D) 300 de k

Boston (8) 200 desks Evansville (E) 150 desks
Cleveland (C) 300 de ks For! Lauderdale (F) 250 desks 2. (,

Table for Problem 9-11

FROM
~ ALBUQUERQUE BOSTON CLEVELAND
DES MOINES ~ ~
lz, :~

EVANSVILLE ~ t-. l2..

FORT LAUDERDALE ~
l2.. L2..
Data for Problem 9-13

FROM
~ PROJECT A PROJECT 8 PROJECT e PLANT CAPACITLES
PLANT 1 $10 $4 $11 70
PLANT2 12 5 8 50
PLANT3 9 7 6 30
PROJECT
REQUIREMENTS 40 50 60 150

Ole: 2 mean rhe problern rnay be sol ved with QM for Windows: rneans the problern muy be
olved with Excel QM; and Q means the problern rnay be solved with QM for Windows and/or Excel QM.
 DISCUSSION QUESTIONS AND PROBLEMS 383

Table for Problem 9-16

SUPPLY SUPPLY MILL

HOUSE I HOUSE 2 CAPACITY (TONS)
$3

25
OAK RIDGE

40
MAPLETOW

30

30 30 35 95

: 9-14 Hardrock Concrete' owner has decided to increase the By Monday, April 16, the following towns will need
capacity at rus malle t plant ( ee Problem 9-13). In- coal cars a follow:
tead of producing 30 load of concrete per day at plant
3, that plan!' capacity i doubled to 60 load . Find Lhe
TOWN DEMA O FOR CARS
new optimal solution using the northwest comer rule
and tepping- tone method. How has changing the Coal Valley 30
third plan!' capacity altered the optimal hipping a - Coaltown 45
signment? Di cuss the concepts of degeneracy and
Coal Junction 25
multiple optimal olutions with regard to thi problem.
Coalsburg 20
: 9-15 Formulate the Hardrock Concrete Company trans-
portation problem in Problem 9-13 as a linear pro-
grarn and olve using computer oftware. What Using a railway city-to-city di tance chart, the di -
would change in the linear program if the change in patcher con truct a mileage table for the preceding
Problem 9-14 were implemented? town . The re ult i. shown in the table below. Mini-
, 9-16 The Saus y Lumber Company hip pine flooring to mizing total mile over which cars are moved to new
three building upply hou es from its mili in locations, compute the be t hipment of coal cars.
Pineville Oak Ridge, and Mapletown. Determine Q: 9-18 Formulate the Krampf Lines Railway Company it-
the be t tran portation schedule for the data given in uation (Problem 9-17) a a linear program and olve
the table. U e the northwest corner rule and the tep- u ing cornputer oftware.
ping- tone method. 2: 9-19 An air conditioning manufacturer produces room air
The Krampf Lines Railway Company specializes in conditioners at plant in Houston, Phoenix, and
coal handling. On Friday, April 13, Krampf had ernpty Memphis. These are sent to regional distributors in
cars at the following towns in the quantitie indicated: Dalla, Atlanta, and Denver. The shipping costs vary,
and the company would like lO find the least-cost
way to meet the demand at each of the distribution
TOW SUPPLY OF CARS
center . Dalla need to receive 800 air conditioner
Morgantown 35 per month, Atlanta need 600, and Denver need 200.
Youngstown 60 Houston has 850 air conditioner available each
Pin burgh 25 month, Phoenix has 650, and Memphi has 300. The
hipping co t per unit from Hou ton to Dalias i $8,

Table for Problem 9-17

COAL VALLEY COALTOW COAL JUNCTIO COALSBURG

MORGA TOW 50 30 60 70
YOUNGSTOW 20 80 10 90
PITTSBURGH 100 40 80 30
384 CHAPTER 9 • TRANSPORTATION ANO ASSIGNMENT MOOELS

lO Atlanta i $12, and to Denver i $10. The co t per to 150 units (see Problem 9-21). What special
unit from Phoenix to Dalla is $10, to Atlanta i $14. condition would exist? What i the minimum-co t
and to Denver i $9. The co t per unit from Memphi olution? Will there be any units remaining at any of
to Dalla i 11, to Atlanta i 8. and to Denver is the manufacturing facilitie ?
12. How many unit hould be hipped from each 2:9-23 Formulate the Finni h Furniture situation (Problem
plant to each regional distribution center? What i the 9-21) as a linear program and solve using computer
total co t for thi ? oftware,
2: 9-20 Formulate the air conditioning ituation pre ent in 2: 9-24 The state of Mi. souri has three major power-generating
Problem 9-18 a a linear program and olve u ing companie (A. B, and C). During tbe month of peak
computer oftware. demand, the Mi souri Power Authority authorize
2: 9-21 Finni h Furniture manufacture table in facilitie these companie to pool their excess upply and to
located in three citie -Reno, Denver, and Pitts- di. tribute it to maller independent power companie
burgh. The tables are then shipped to three retail that do not have generator large enough to handle
tore located in Phoenix, Cleveland, and Chicago. the demando Excess upply i distributed on the ba-
Management wi hes to develop a distribution ched- sis of cost per kilowatt hour transmitted. The follow-
ule that will meet the demand at the lowe t pos ible ing table shows the demand and supply in millions
co t. The shipping cost per unit from each 01' the 01' kilowatt hours and the cost per kilowatt hour of
ource to each of the de. tinations i hown in the transmitting electric power to four mall companies
following table: in cities W, X, Y, and Z:

EXCESS
W X y Z SUPPLY
~FROM PHOENIX CLEVELAND CHICAGO ~FROM
RE O 10 16 19 A 12~ 4<t 9~ 5~ 55

DE VER 12 14 13 8 8~ I~ 6~ 6~ 45

PITT BURGH 18 12 12 e I~ 12e 4~ 7i 30

U FILLED POWER
The available upplie are 120 unit from Reno. 200 DEMA D 40 20 50 20
from Denver, and 160 from Pitt burgh. Phoenix has
a demand of 140 unit , Cleveland ha a demand of Find an initial transmission assignment of the exce
160 units, and Chicago ha a demand of l O unit . power upply. Then find the least-co. t distribution
How many unit should be hipped from each rnan- ystem.
ufacturing facility to each of the retail stores ir cost 2: 9-25 Consider the tran portation table given below. Find
i to be minimized? What i the total co t? an initial olution using the northwest comer rule.
9-22 Finnish Furniture has experienced a decrease in the What special condition exist. ? Explain how you will
demand for tables in Chicago; the demand ha fallen proceed to olve the problem.

Table for Problem 9-25

DESTI ATION DESTINATIO DESTI ATIO

~FROM A 8 e SUPPLY
SOURCE 1 ~ ~ ~
72
SO URCE 2 l2 ~ ~
38
SO RCE 3 ~
l.z. ~
46
SOURCE4 ~ ~ ~
19
DEMA D 110 34 31 175
 DISCUSSION QUESTIONS AND PROBLEMS 385

g: 9-26 The three blood bank in Franklin County are coordi- maximum credit ceiling on how much it will lend
nated through a central office that facilitate blood de- Hall in total. Thi information is summarized in the
livery to four ho pital in the region. The co t to . hip table on this page.
a tandard container of blo d from each bank 10 each Each apartment building i equally attractive as
ho pital i shown in the table below. Also given are an inve tmenl to Hall, o he ha decided to pur-
the biweekly number of containers available at each cha e all building po ible at the lowest total pay-
bank and the biweekly number of container of blood ment of intere t. From which saving and loan
needed at each ho pital. H w many hiprnent hould companie hould he borrow to purcha e which
be made biweekJy from each blood bank to each ho. - buildings? More than one avings and loan can fi-
pital o that total hipment co ts are minimized? nance the same property.
Formulate the Franklin County Blood Bank situation 2: 9-29 Formulate the B. Hall Real Estate lnvestment Cor-
(Problem 9-26) a a linear program and .olve u ing poration problem (Problem 9-28) as a linear pro-
computer oftware. gram and solve u ing computer oftware.
The B. Hall Real E tale Investment Corporation has Q: 9-30 The J. Mehta Company' production manager is
identified four small apartment buildings in which it planning for a erie of I-month production period
would Iike to inve t. Mrs. Hall has approached three for stainless steel sinks. The demand for the next
avings and loan companie regarding financing. 4 months is a. follows:
Becau e Hall has been a good client in the past and
has rnaintained a high credit rating in the commu-
nity, each savings and loan company is willing to DEMANDFOR
consider providing all or part of the mortgage loan MONTH STA1 LES TEEL SINKS
needed on each property. Each loan officer ha set 120
differing intere trate on each property (rate are af- 2 160
fected by the neighborhood of the apartment build-
3 240
ing, condition of the property, and de ire by the
individual aving and loan to finance various-size 4 100
building ). and each loan company has placed a

Table for Problem 9-26

HOSPITAL HO PITAL HOSPITAL HOSPITAL

~FROM 1 2 3 4 SUPPLY

~ ~ ~ ~
BA K 1 50
IU

BANK2
~ E ~ ~
80

~ ~ ~ ~
BA K 3
120
DEMA D 90 70 40 50 250

Table tor Problem 9-28

PROPERTY (INTEREST RATES) (%)

AVI GS A D DRURY MAXlMUM

LOAN COMPANY HILL ST. BANKSST. PARK AVE. LANE CREDIT UNE ($)
FlRST HOMESTEAD 8 8 10 11 80,000
COMMO WEALTH 9 10 12 10 100,000
WASHINGTO FEDERAL 9 11 10 9 120,000
LOAN REQUIRED TO
PURCHASE BUTLDI G 60,000 $40,000 $130.000 70.000
386 CHAPTER 9 • TRANSPORTATION AND ASSIGNMENT MODELS

The Mehta firm can normally produce 100 stainles where to open the new plant. How much difference
teel ink in a month. Thi i done during regular in the cos ts for the two locations?
production hours at a cost of $100 per ink. Ir de- Marc Smith, vice pre ident for operations of HH .
mand in any 1 month cannot be ati fied by regular Inc.. a manufacturer of cabinets for telephone
production, the production manager has three other switches, is constrained from meeting the 5-year
choices: (1) He can produce up to 50 more ink. per forecast by limited capacity at the existing three
month in overtime but at a cost of $130 per sink ; plant . These three plants are Waterloo, Pusan, and
(2) he can purchase a limited number of sinks from Bogota. You, as hi able a si tant, have been told
a friendly competitor for re ale (the maximum num- that because of existing capacity constraint and the
ber of out ide purcha e over the 4-month period is expanding world market for HH cabinet, a new
450 inks at a co t of 150 each); or (3) he can fill plant i te be added to the exi ting three plant . The
the demand from hi on-hand inventory. The inven- real e tate department ha. advised Marc that two
tory carrying co t i 10 per ink per month. Back ite seern particularly good because of a stable po-
orders are not permitted. lnventory on hand at the litical ituation and tolerable exchange rare: Dublin,
beginning of month I i 40 ink . Set up this "pro- Ireland, and Fontainebleau, France. Marc suggest
duction moothing" problem a a transportation that you . hould be able to take the data on the next
problem to minimize co t. U e the northwe t comer page and determine where the fourth plant hould be
rule to find an initiallevel for production and outside located on the basis of production cost and tran -
purchases over the 4-month periodo portation co t . Which location is better?
2: 9-31 Formulate the J. Mehta production problem (See Don Levine Corporation is con idering adding
Problern 9-30) as a linear program and olve u ing an additional plant to ir three existing facilities
cornputer oftware. in Decatur, Minneapoli , and Carbondale. Both
2: 9-32 Ashley's Auto Top Carriers currently maintains St. Loui and East St. Louis are being con idered.
plant in Atlanta and Tul a that upply major distri- Evaluating only the transportation cost per unir a
bution centers in Los Angeles and New York. Be- shown in the tables below and on the next page,
cau e of an expanding dernand, Ashley has decided which site is best?
to open a third plant and has narrowed the choice to
one of two citie -New Orleans or Houston. The
pertinent production and di tribution co t , as well
a the plant capacitie and di tribution demand ,are TO O TI

hown in the table below. Blue Eanh BI

Which of the new po ible plants hould be opened? Ciro 25 27 20 Ci
2: 9-33 Formulate and olve linear program to help A hley': Des Moines 22 25 22 De
Auto Top Carrier (See Problern 9-32) determine
Capacity 300 200 150 Ü

2:
Data for Problem 9-32

•
• • ...... •
$8 $5 600 6
Existing
plants
$4 $7 900 5

Proposed
•• $5 $6 500 4 (anticipated)

locations
• @
..
• 3 (anticipated)
$4 500

• 800 1,200 2,000

Indicates distribution cost (shipping, handling, storage)

will be $6 per carrier if sent from Houston to New York
 DISCUSSION QUESTIONS AND PROBLEMS 387

Data for Problem 9-34

MARKETAREA WATERLOO PUSA DU8UN

Canadá
Demand 4,000
Production eo t $50 $30 $40 $50 45
Tran portation eost 10 25 20 25 25
South América
Demand 5 000
Produetion eost 50 30 40 50 45
Tran portation cost 20 25 10 30 30
Pacific Rim
Demand 10,000
Produetion eo t 50 30 40 50 45
Tran portation eo t 25 10 25 40 40
Europe
Demand 5,000
Produetion cost 50 30 40 50 45
25 40 30 10 20
8,000 2,000 5,000 9,000 9,000

FROM PROPOSED PLANTS MACHlNE

TO EAST STo LOUIS STo LOUIS J08 W X y Z

BlueEarth $29 27 AI2 10 14 16 13
Ciro 30 28 AI5 12 13 15 12
De Moine 30 31 82 9 12 12 11
Capaeity 150 150 89 14 16 18 16

¡9-36 U ing the data from Problem 9-35 plu the unit pro- 2: 9-38 Four automobiles have entered Bubba's Repair Shop
duction cost shown in the following table, which 10- for variou type of work, ranging from a transrnis-
cations yield the lowest co t? ion overhaul to a brake job. The experience level of
the mechanic i quite varied, and Bubba would like
to minimize the time required to complete all of the
LOCATIO PRODUCTIO COSTS
job . He ha estimated the time in minutes for each
Deeatur $50 mechanic to complete each job. Billy can complete
Minneapolis 60 job I in 400 minutes, job 2 in 90 minutes, job 3 in
Carbondale 70 60 minutes, and job 4 in 120 minute . Taylor will
fini h job I in 650 minute , job 2 in 120 minutes, job
Ea t St. Loui 40
3 in 90 minute , and job 4 in 180 minute . Mark will
St. Loui 50 finishjob I in 480 minutes,job 2 in 120 minute ,job
3 in 80 minute , and job 4 in 180 minutes. John will
. 9-37 In ajob hop operation, four job may be performed complete job 1 in 500 minutes, job 2 in 110 minutes,
on any of four machines. The hour required for job 3 in 90 rninute , and job 4 in 150 minutes. Each
each job on each machine are pre ented in the fol- mechanic hould be assigned to ju t one of these
lowing table. The plant upervi or would like to as- jobs. What is the mínimum total time required to
ign job o that total time i minimized. Find the fini h the four jobs? Who should be a signed to
be t olution. each job?
388 CHAPTER 9 • TRANSPORTATION AND ASSIGNMENT MODELS

2: 9-39 Ba eball umpiring crew are currently in four cities Bardot, and Hoolihan. Believing in the quantitative
where three-game erie are beginning. When the e analy is approach to problem olving, the adrninis-
are fini hed. the crews are needed to work games in trator ha interviewed each nur e, con idered his 01'
four different citie . The di tance (mile) from each her background, personality, and talents, and devel-
of the cities where the crews are currently working oped a cost cale ranging from O to 100 to be u ed in
to the citie where the new game will begin are the a ignment. A O for ur e Bardot being a igned
hown in the following table: to the cardiology unit implie that he would be per-
fectly uited to that ta k. A value clo e to 100, on the
other hand, would imply that he i not at all uited
TO to head that unit. The accompanying table gives the
complete set of cost figure that the hospital admin-
FROM KANSAS CITY CHICAGO DETROIT TORONTO
istrator felt represented all possible a ignments.
Seattle 1.500 1,730 1,940 2.070 Which nur e should be a igned to which unit?
Arlington 460 810 1,020 1,270
Oakland 1,500 1,850 2,080 X DEPARTMENT

Baltirnore 960 610 400 330 URSE UROLOGY CARDIOLOGY ORTHOPEDlCS OBSTETRICS
Hawkins 28 18 15 75
ondriac 32 48 23 38
The X indicates that the crew in Oakland cannot be Bardot 51 36 24 36
ent to Taranta. Determine which crew should
Iloolihan 25 38 55 12
be ent to each city to minimize the total distance _
traveled. How many mile will be traveled if these
a ignments are made? The Gleaming Company ha just developed a new
dishwashing liquid and i preparing for a national tel-
2: 9-40 In Problem 9-39, the minimum travel di tance wa
evi ion prornotional campaign. The firrn has decided 2-
found. To ee how much better thi olution i than
to chedule a serie. of l-rninute commercial during
I
the a ignment that might have been made. find the
the peak homemaker audience viewing hours of I to
a signment that would give the maximum distance
5 p.m. To reach the wide t possible audience, Glearn-
traveled. Compare thi total di tance with the dis-
ing wants to chedule one commercial on each of four
tance found in Problem 9-39.
network and to have one commercial appear during
2: 9-41 Roscoe Davis, chairman of a college' business each of the four l-hour time blocks. The exposure rat-
departrnent, has decided to apply a new method in ings for each hour, which repre ent the number of
assigning profe or to course next semester. As a viewer per $1 ,000 pent, are pre. ented in the follow-
criterion for judging who hould teach each cour e,
ing table. Which network should be cheduled each
Profe. or Davi reviews the pa t two year ' teaching
hour to provide the maximum audience exposure?
evaluations (which were filled out by students).
Since each of the four profe ors taught each of the
NETWORK
four cour es at one time 01' another during the two-
year period, Davi is able to record a course rating VIEWING HOURS A B e INDEPENDENT
for each instructor. The e rating are shown in the 1-2 P.M. 27.1 18.1 11.3 9.5
table. Find the be t as ignment of profe 01'. to
2-3 P.M. 18.9 15.5 17.1 10.6
cour e to maximize the overall teaching rating.
3-4 P.M. 19.2 18.5 9.9 7.7
4-5 P.M. 11.5 21.4 16.8 12.8

PROFESSOR STATISTlCS MA 2: 9-44 The Fix-It Shop (see Section 9.8) has added a fourth
Ander on 90 65 95 40 repairman, Davi .. Solve the accompanying cost
Sweeney 70 60 O 75 table for the new optimal a ignment of workers to
William
project . Why did thi solution occur?
85 40 O 60
McKinney SS 80 65 SS
PROJECT

WORKER 1 2 3
2: 9-42 The hospital admini trator at St. Charles General Adarns $11 $14 6
mu t appoint head nur e to f ur newly e tablished
Brown 8 10 1I
departments: urology, cardiology, orthopedic , and
obstetrics. In anticipation of this staffing problem, Cooper 9 12 7
she had hired four nurses: Hawkins, Condriac, Davis 10 13 8
 DISCUSSION QUESTIONS AND PROBLEMS

Data for Problem 9-45

ELECTRONIC PLANT
COMPO ENT 2 3 4 5 6 7 8
C53 $0.10 $0.12 $0.13 $0.11 $0.10 $0.06 $0 ..16 $0.12
C81 0.05 0.06 0.04 0.08 0.04 0.09 0.06 0.06
D5 0.32 0.40 0.31 0.42
0.30 0.35 0.36 0.49
D44 0.17 0.14 0.19 0.15 0.10 0.16 0.19 0.12
E2 0.06 0.07 0.10 0.05 0.08 0.10 0.11 0.05
E35 0.08 0.10 0.12 0.08 0.09 0.10 0.09 0.06
G99 0.55 0.62 0.61 0.70 0.62 0.63 0.65 0.59

: 9-45 The Patrieia Garcia Company is produeing even

new medieal produets. Each of Garcia's eight plants
2: 9-47 NASA's a tronaut crew eurrentJy includes 10 mis-
sion peeiali ts who hold a doctoral degree in either
can add one more produet to its current line of med-
astrophysics or a tromedieine. One of these special-
ieal deviee . The unit manufacturing costs for pro-
ists will be assigned to eaeh of the 10 flights sched-
dueing the different parts at the eight plants are
uled for the upcoming nine months. Mission
shown in the table above. How should Gareia assign
speeiali ts are responsible for earrying out scientifie
the new products to the plant to minimize rnanufac-
and medieal experirnenrs in pace or for launching,
turing costs?
retrieving, or repairing atellite . The ehief of astro-
! 9-46 Haifa lnstruments, an 1 raeli produeer of portable naut per onnel, him elf a former erew member with
kidney dialysis units and other medieal prcducts, three rnissions under his belt, must decide who
develops an 8-month aggregate plan. Demand and should be assigned and trained for eaeh of the very
eapaeity (in unit ) are forecast as shown in the table different missions. Clearly, astronauts with medical
below.
edueations are more uited to missions involving bi-
The co t of produeing each dialysis unit is $1,000 ologieal or medieal experiments, wherea tho e with
on regular time, $1300 on overtirne, and $1,500 on engineering- or physies-oriented degrees are best
a ubcontracr, Inventory earrying eo t is $100 per suited to other types of mi sion . The chief assigns
unit per month. There is no beginning or ending in- each astronaut a rating on a seale of I to 10 for eaeh
ventory in stock. po ible mission. with a 10 being a perfect match for
(a) Set up a production plan, u ing the transporta- the task at hand and a I being a mismateh. Only one
tion model, that minimizes cost. What is this specialist is assigned to eaeh flight and none is feas-
plan' eost? signed until all other have flown at least once.
(b) Through better planning, regular time produc- (a) Who hould be assigned to which flight?
tion can be et al exaetly the ame value, 275 per (b) NASA has just been notified that Anderson i
month. Does this alter the solution? getting rnarried in February and has been
(e) If overtime costs rise from J ,300 to $1,400, granted a highly sought publicity tour in Europe
doe thi. ehange your answer to part (a)? What that month. (He intends to take his wife and let
if they fall to $ 1,200?

Data for Problem 9-46

CAPACITY
SOURCE JAN. FEB. MAR. APR. MAY JU E JULY AUG.
Labor

Regular time 235 255 290 300 300 290 300 290
Overtirne 20 24 26 24 30 28 30 30
SubCOnLraCI 12 15 15 17 17 19 19 20
Dernand 255 294 321 301 330 320 345 340
390 CHAPTER 9 • TRANSPORTATION AND ASSIGNMENT MODELS

Data for Problem 9-47 Cal

MISSIO An!
lA . FEB. FEB. MAR. APR. MAY JU. AUG. SEP.
ASTRO AUT 12 5 26 26 12 1 9 20 19 Ano
di tJ
Vincze 9 2 1 10 9 8 9 2 6
thro
Veit 8 8 3 4 7 9 7 7 4 4 eve
Anderson 2 1 10 10 4 7 6 6 7 ture
Herbert 4 4 10 9 9 9 2 3 4 (wa

Schatz 10 10 9 9 8 9 1
derr
Plane 3 5 7 9 7 10 10 9 2 Ba
Certo 9 9 8 8 9 2 2 9 feel
Mose 3 2 7 6 4 3 9 7 7 9 mai
clo
Brandon 5 4 5 9 10 10 5 4 9 8
exc
Drtina 10 10 9 7 6 7 5 4 8 8 wee

the trip double a a honeymoon.) How does this potential distributors in one of five different areas. lt
change the final schedule? i anticipated that the salesperson will spend about
(e) Certo ha complained that he wa mi rated on three to four weeks in each area. A statewide mar-
hi January mi ion. Both rating hould be keting campaign will begin once the product ha
10 , he claim to the chief, who agree and re- been delivered to the di tributors. The five ale peo-
computes the schedule. Do any change occur pIe who will be a igned to these areas (one per on
oyer the schedule set in part (b)? for each area) have rated the area on the de irability
(d) What are the strength and weakne e of thi of the as ignment as hown in the following table.
approach to cheduling? The cale i I (lea t desirable) to 5 (rnost desirable).
2: 9-48 The XYZ Corporation i expanding it market to Which a ignment hould be made if the total of
include Texa . Each ale per on i a igned to the ratings is to be maximized?

AUSTIN/SAN DALLASIFf. EL PASO/WEST HOUSTO / CORPUS CHRlSTIIRJO

ANTONIO WORTH TEXAS GALVESTON GRANDE VALLEY
Erica 5 3 2 3 4
Louis 3 4 4 2 2
Maria 4 5 4 3 3
Paul 2 4 3 4 3
Orlando 4 5 3 5 4

Internet Homework Problems

See our Internet home page, at www.pearonhighered.com/render. for additional problem ,

Problem 9-49 through 9-55.
 CASESTUDY 391

Case Study

Andrew-Carter, Inc.
Andrew-Carter, lnc. (A-C), is a major Canadian producer and The plant capacities in units per week are
di tributor of outdoor lighting fixture . It fixture is di tributed
Plant 1, regular time 27,000 unit
Ihroughout North America and has been in high demand for
veral year . The company operates three plants that manufac- Plant 1, on overtime 7,000 units
ture the fixture and distribute it to five distribution centers Plant 2, regular time 20,000 units
warehouse ). Plant 2, 00 overtime 5,000 units
During the pre ent rece ion, A-C has een a major drop in
Plant 3, regular time 25,000 units
demaod for ir. fixture as the hou ing market ha. declined.
Ba ed 00 the forecast of interest rates, the head of operations Plant 3, on overtime 6,000 uoit
eel that demaod for housing and thu for it product will re- Ir A-C hut down any plants, its weekly costs will change,
maindepressed for the foreseeable future. A-C is considering as fixed costs are lower for a nonoperating plant. Table 9.34
lo iog one of its plants, a it is now operating with a forecasted shows production costs at each plant, both variable at regular
exce capacity of 34000 units per week. The foreca ted time and overtime, and fixed wheo operating and shut down.
eeklydemands for the coming year are Table 9.35 show di tribution costs from each plant to each
Warehouse I 9,000 units warehouse (di tribution center).

Warehouse 2 13,000 units

Discussion Questions
Warehou e 3 11,000 uoits
l. Evaluate the various configuration. of operating and
Warehou e 4 15,000 units
closed plants that will meet weekly demando Determine
Warehouse 5 8,000 units which configuration minimize total costs.
2. Discuss the implications of closing a plant.

Source: Professor Michacl Ballot, University of the Pacifico

TABLE 9.34
Andrew-Carter, Inc., •
Variable Costs and Fixed
OPERATING
•
Production Costs per Week No. 1, regular lime $2.80/unil $14,000 $6,000
No. 1, overtime 3.52
No. 2, regular time 2.78 12,000 5,000
No. 2, overtirne 3.48

No. 3. regular time 2.72 15.000 7,500

No. 3, overtirne 3.42

TABLE 9.35
ro DlSTRIBUTION
Andrew-Carter, Inc.,
Distribution Costs •
per Unit No. I
o. 2
NO.3 0.54
392 CHAPTER 9 • TRANSPORTATION AND ASSIGNMENT MODELS

Case Study [

Old Oregon Wood Store

Jn 1992, George Brown started the Old Oregon Wood Store to lt takes Cathy longer than the other employee to con truct
manufacture Old Oregon table . Each table is carefully con- an Old Oregon table. In addition to being slower than the other
tructed by hand u ing the highe. t-quality oak. Old Oregon employee ,Cathy is al o unhappy about her current re pon i-
table can upport more than 500 pound , and ince the tart of bility of packaging, which leave her idle most of the day. Her
the Old Oregon Wood Store, not one table ha been returned first preference i fini hing, and her second preference i
becau e of faulty workman hip or structural problem . In addi- preparation.
tion to being rugged, each table i beautifully fini. hed u ing a In addition to quality, George i concerned with co ts and
urethane varni h that George developed over 20 years of work- efficiency. When one of the employee misses a day, it cau es
ing with wood-finishing materials. major scheduling problems. In some cases. George a sign an-
The manufacturing proce con ists of four step : prepara- other employee overtime to complete the necessary work. At
tion, a ernbly, finishing, and packaging. Each tep i per- other times, George simply waits until the employee returns to
formed by one per on. In addition to overseeing the entire work to complete his or her step in the manufacturing process.
operation, George does all oí"the fini. hing. Tom Surowski per- Both solution cau e problem . Overtime is expensive, and
forms the preparation step, which involve cutting and forming waiting causes delays and sometime. stop the entire rnanufac-
the basic component of the table . Leon Davis is in charge of turing proce s.
the a sembly, and Cathy Stark perforrn: the packaging. To overcome so me of these problems. Randy Lane was
Although each person i re. p n ible for only one step in hired. Randy's major duties are to perform mi cellaneous job.
the manufacturing proce ,everyone can perform any one of the and to help out if one of the employees is absent. George has
step . It is George's policy that occa ionally everyone should given Randy training in all phases of the manufacturing process,
complete several table on hi or her own without any help or and he i plea ed with the peed at which Randy has been able
a i tance. A mall competition i used to . ee who can complete to learn how to completely a. semble Old Oregon table . Total
an entire table in the lea t amount of time. George maintain and interrnediate completion time. are given in Figure 9.6. B
average total and intermediate completion time . The data are
hown in Figure 9.5. Ad

FIGURE 9.5
100 160 250 275
Manufacturing Time
in Minutes Preparation Assembly Finishing Packaging 80
I
(Tom)

80 160 220 230

Preparation Assembly Finishing Packaging
I DOI
(George)

110 200 290 He;

Preparation Assembly Finishing Packaging
I
(Leon)

120 190 290 315

Preparation Assembly
I Finishing Packaging Ap
(Cathy)
Q
igJ
FIGURE 9.6 dar:
110 190 290 300 ho
Randy's Completion
Preparation Assembly Finishing Packaging exa
Times in Minutes
 APPENDIX 9.1: USING QM FOR WINDOWS 393

Discussion Questions 3. What i the faste t time to manufacture a table with the
original crew if Cathy i moved to either preparation or
1. What i the fa te t way to manufacture Old Oregon table fini hing?
u ing the original crew? How many could be made per day? 4. Whoever performs the packaging function i everely un-
2. Would production rate and quantitie change ignifi- derutilized. Can you find a better way of utilizing the four-
cantly if George would allow Randy to perform one of the or five-person crew than either giving each a ingle job or
four function and make one of the original crew the allowing each to manufacture an entire table? How many
backup per on? table could be manufactured per day with this cheme?

Internet Case Studies

See our Internet home page, at www.pearsonhighered.comlrender. for these additional case tudies:
(l) Northwest General Hospital: This case involves improving the food di tribution system in
a ho pital to reduce ihe chances of food getting cold before it i delivered to the patient .
(2) Custom Vans, Inc: Thi case involves Iinding the be t location for a plant that will manu-
facture shower u ed in cu tomized van .

Bibliography

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Fixed-Charge Tran portation Problem," Journal of the Operational and Distribution Decisions for 11, Malt Plants," Interfaces 29.
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University," Interfaces 28,2 (March-April 1998): 58-71. Varying Demand and Supply," Omega 31. 4 (2003): 247-251.
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Prograrnrning," Operations Research 4 (1956). rithrn 10 Satellite Comrnunication," Central European Journal of Opera-
Dawid, Herbert, Johannes Konig, and Christi ne Strauss. "An Enhanced Ros- tions Research 18, 1 (2010): 47-58.
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Domich, ? D., K. L. Hoffman, R. H. F. Jackson, and M. A. McClain. "Locar- Pooley, J. "Integrated Production and Distribution Facility Planning al Ault
ing Tax Facilities: A Graphics-Based Microcomputer Optirnization Foods:'/me/faces 24. 4 (July-August 1994): 113-121.
Model," Management Science 37 (August 1991): 960-979. Render. B., and R. M. tair, lntroduction /O Management Science. Boston:
Hezarkhani,Behzad, and Wieslaw Kubiak. HA Coordinaung Contraer for Allyn & Bacon. lnc.. 1992.
Transshiprnent In a Two-Company upply Chain," European Journal of
Operational Research 207, 1 (2010): 232-237.

Appendix 9.1: Using QM for Windows

QMfor Window ha both a tran portation module and an a - re ults are hown in Figure 9.6B. By clicking WindolV, you have
signment module in it menu. Both are ea y to use in terms of the option of eeing the iterations that are performed to reach the
data entry and ea y to interpret in term. of output. Program 9.6A final olution. Program 9.7 A provides the input creen for the
how the input creen for the Executive Furniture tran portation Fix-It hop as ignment example. Simply enter the co ts and then
example.The tarting solution technique may be pecified. The click Solve. Program 9.7B give the olution to thi .