P. 1
Micro Economics Schedule Using Transportation Model

# Micro Economics Schedule Using Transportation Model

|Views: 4|Likes:
Taiwan Electronics produces three models of CB radios, A, B, and C. The estimated demand for the three models is 10,000, 12,000, and 7,000 units, respectively. The radios can be produced on one of four available production lines: Q, R, S, and T, whose production capacities are: 6,000, 15,000, 20,000 units, respectively. The manufacturing costs vary among the production lines and are shown in the table below (in \$ per unit)
Taiwan Electronics produces three models of CB radios, A, B, and C. The estimated demand for the three models is 10,000, 12,000, and 7,000 units, respectively. The radios can be produced on one of four available production lines: Q, R, S, and T, whose production capacities are: 6,000, 15,000, 20,000 units, respectively. The manufacturing costs vary among the production lines and are shown in the table below (in \$ per unit)

Categories:Types, School Work

See more
See less

09/28/2013

\$6.99

USD

# Economics

Homework Help
Step-by-Step Solutions

LEARN TO EXCEL

Experienced Tutors Detailed Explanation

www.classof1.com/homework-help/economics

A. 20. . The manufacturing costs vary among the production lines and are shown in the table below (in \$ per unit) model A B C Q 60 80 75 R 53 75 70 S 61 81 75 T 50 70 65 The company’s objective is to meet all estimated demand at the lowest possible manufacturing cost. R.000. and T.000.classof1. S.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades.Sub: Economics Question: Topic: Micro Economics Micro Economics Schedule Using Transportation Model Taiwan Electronics produces three models of CB radios. The estimated demand for the three models is 10. and C. 12.000 units. respectively. 15.000. The radios can be produced on one of four available production lines: Q. and 7.000. B.000 units. www. whose production capacities are: 6. Use the transportation model to find the best production schedule. respectively.

classof1. Because Supply is greater than demand. Total Demand at this station is 16000 (45000-29000) DEMA ND A SUP PLY Q R S T 60 53 61 50 10000 B 80 75 81 70 C 75 70 75 65 D 0 0 0 0 16000 6000 15000 20000 4000 12000 7000 Let us solve the problem with Vogel approximation method.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades.Sub: Economics Solution: Topic: Micro Economics Lets us use Vogel’s approximation method to find basic feasible solution. . Let us create a dummy demand station. Write the difference of minimum cost and next to minimum cost against each row and each column in the penalty column. DEMAND A SUP PLY Q R S T 60 53 61 50 B 80 75 81 70 C 75 70 75 65 D 0 0 0 0 6000 15000 20000 4000 Penalty 60 53 61 50 www. D.

classof1. Allocate the maximum units to the place where the cost is minimum in row three. DEMAND A SUP PLY Q R S T 60 53 61 50 10000 Pena lty 3 5 5 0 B 80 75 81 70 12000 C 75 70 75 65 7000 D 0 0 0(16000) 0 0 6000 15000 4000 4000 Penalty 15 17 14 15 Again repeat same step. . DEMAND A SUPPLY Q R 60 53(10 B 80 75 C 75 70 D 0 0 6000 5000 Penalty 5 5 www. And minimum cost in row second is 53.Sub: Economics 10000 Pena lty 3 5 5 0 12000 7000 16000 Topic: Micro Economics Identify the maximum penalties.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades. We see that maximum penalty is in row second. In this case it is at row three. Now write the remaining stock penalties and stock.

classof1. DEMAND A SUPPLY Q R 60 53(10000) B 80 75 C 75(3000) 70 D 0 0 3000 5000 Penalty 5 5 www. We see that maximum penalty is in row third. . We see that maximum penalty is in row one.Sub: Economics 000) S T 61 50 0 Penalty 3 81 70 12000 5 75 65 7000 5 0(16000) 0 0 0 Topic: Micro Economics 4000 4000 6 5 Again repeat same step.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades. And minimum cost in row three is 75. And minimum cost in row one is 75. DEMAND A Q SUPPLY R S T 60 53(10000) 61 50 0 Penalty 3 B 80 75 81 70 12000 5 C 75 70 75(4000) 65 3000 5 D 0 0 0(16000) 0 0 0 6000 5000 0 4000 Penalty 5 5 6 5 Again repeat same step.

.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades.Sub: Economics S T 61 50 0 Penalty 3 81 70 12000 5 75(4000) 65 0 5 Topic: Micro Economics 0(16000) 0 0 0 0 4000 6 5 DEMAND A Q SUPPLY R S T 60 53(10000) 61 50 0 Penalty 0 B 80(3000) 75(5000) 81 70(4000) 0 0 C 75(3000) 70 75(4000) 65 0 0 D 0 0 0(16000) 0 0 0 0 0 0 0 Penalty 0 0 0 0 Thus initial basic solution is thus obtained.classof1. DEMAND A Q SUPPLY R S T 60 53(10000) 61 50 B 80(3000) 75(5000) 81 70(4000) C 75(3000) 70 75(4000) 65 D 0 0 0(16000) 0 6000 15000 20000 4000 www.

com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades.Sub: Economics 10000 12000 7000 16000 Topic: Micro Economics Now we will check if the solution.classof1. so obtained by Vogel's method. DEMAND A Q SUPPLY R S T Vj 58 70 80 75 0 53 B 80 75 75 0 C 75 D Ui 0 -5 0 -10 Ui+Vj for empty positions DEMAND A Q SUPPLY R S T Vj 58 48 58 80 80 65 75 -10 0 58 70 B C D 0 -5 Ui 0 -5 0 -10 Cij for empty positions www. . is also optimal solution.

com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades. .Sub: Economics DEMAND A Q SUPPLY R S T Vj 61 50 58 80 81 60 B Topic: Micro Economics C D 0 Ui 0 -5 0 70 0 65 75 0 0 -10 Dij=Cij-(Uij+Vij) will give following matrix DEMAND A Q SUPPLY R S T Vj 3 2 58 80 1 0 75 10 0 2 0 B C D 0 5 Ui 0 -5 0 -10 Since all values of Dij are positive. we conclude that the solution obtained by Vogel's Method is Optimal Solution. The Solution is: DEMAND SUPPLY A Q B 3000 C 3000 D 6000 www.classof1.

This is minimized cost. .Sub: Economics R S T 10000 4000 12000 7000 10000 5000 4000 Topic: Micro Economics 15000 16000 20000 4000 16000 45000 Total cost is =80*3000+75*3000+53*1000+75*5000+75*4000+70*4000=1950000. www.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades.classof1.

Physiology 56. Information Systems 38. Geology 33. Materials Engineering 47. Sociology 63. English 25. Astronomy 7. Marketing Homework Help 45. Electrical Engineering 23. Social Work 62. Mass Communication 46. Chemistry 14. Religious Studies 59. Nursing 52. Business Law 11. Physics 55. Macro Economics 43. The list of subject areas in which we offer academic assistance is as given below: 1.com or call our toll-free number 1. Management Accounting 44. Biology 10. Chemical Engineering 13. Anthropology 5. Biochemistry 9. History 35. Rhetoric 60. Statistics 64. Operations Management 53. HBS Case Study Analysis 34. Gender Studies 31. MS-Office 42. International Finance 40. Actuarial Science 3. Taxation 65. .Sub: Economics Topic: Micro Economics For more details on Classof1 or customized academic assistance please feel free to write to us at learning@classof1. Economics 22. Earth Science 21. International Economics 39. Business Management 12. Corporate Strategy 19.com/homework-help/economics *The Homework solutions from Classof1 are intended to help students understand the approach to solving the problem and not for submitting the same in lieu of their academic submissions for grades. Environmental Science 27. Philosophy 54. Environmental Engineering 26. Engineering 24. Essay Writing 28. Computer Science 17. Psychology 58. Classical Studied 16. Finance 29.classof1. Social Studies 61. Political Science 57. Corporate Finance 18. Anatomy 4. Geography 32. Biochemical Engineering 8.877. Hospitality Management 36. Micro Economics 51. Investment Portfolio Management 41. Zoology www. Civil Engineering 15. Medical Science 50. Cost Accounting 20. Architecture 6. Human Resource Management 37. Accounting 2. Financial Accounting 30. Math 48. Mechanical Engineering 49.252 – 7763.

scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->