Prof. Vinay Pandit
9) A plastic modeling company produces homogeneous molding in its three factories X, Y and Z. Thesehave to be distributed to the three wholesale outlets A, B and C. Data regarding unit transportationcost, capacity and demand are given belowFactoriesABCFactory capacity (units)X785200Y1136150Z857350Outlet demand (units)150175425Find the allocation of factory outputs to the wholesale outlets and asses the total cost10) A company has factories at F1, F2and F3 which manufactures and supplies the same commodity tosales depots at D1, D2, D3 and D4. Production capacity of factories in any month is 1600, 1500 and1900 units respectively. Sales depots have standardized their requirement over a period of time andhave a constant in- takes month after month. Their demand in any month is 800, 900, 1700 and 1600units respectively. Depending on the location of the factories and the process involved, themanufacturing costs vary from factory to factory as given below:MANUFACTURING COST PER UNITF1 F2 F3141013Depending on the relative location, the unit transportation cost also varies. Details of the same aregiven below:D1D2D3D4F12637F21545F34436Depots are distributed all over the country. Depending on the demand, competition and the factory of origin (quality difference) the unit sale realization varies in a factory depot combination basis, asreproducer below:Sales Realisation (Rs. /unit)D1D2D3D4F140384550F230322830F350454240The product in chare wants to draw out a schedule of manufacturing/transportation/sale which wouldmaximize overall profits to the company.Use a transportation model to arrive at the profits maximization allocation.
Logistics Management TYBMS