CONTINUOUS ASSESSMENT

(INDIVIDUAL)

Title

Continuous Assessment: Evaluation - 2

Subject
MBA 51013 Quantitative Methods for Decision Making

Lecturer In-Charge
Mrs. Salfiya U.A.Jaleel - Senior Lecturer

Name - SEU/FMC-PG/16/MBA/032

_________________________________________________

For Official Use

Submission date:

Result / Grade:

Comments if any

South Eastern University of Sri Lanka

Faculty of Management and Commerce
Postgraduate Unit

1
 Q-1.
TO X Y Z SUPPLY
FROM
22 17 30 1400
D1
D2 15 35 20 1600

D3 28 21 16 1200

DEMAN 1250 1500 1450 4200

D

i. Minimize(z)=22x11+17x12+30x13+15x21+35x22+20x23+28x31+21x32+16x33

Subject to
x11+ x12+ x13=1400 (Supply at D1)
x21+ x22+ x23=1600 (Supply at D2)
x31+ x32+ x33=1600 (Supply at D2)

x11+ x21+ x31=1400 (Demand at X)

x12+ x22+ x32=1600 (Demand at Y)
x13+ x23+ x33=1600 (Demand at Z)

All xij>=0

ii. The Initial Solution by North West Corner Method

TO X Y Z SUPPL
FROM Y
22 17 30 1400
D1 1250 150
D2 15 35 20 1600
1350 250
D3 28 21 16 1200
1200
DEMAN 1250 1500 1450 4200
D

Direction Cost
Plan
2
 D1X 27,500
D1Y 2,550
D2Y 47,250
D2Z 5,000
D3Z 19,200
Total Cost 101,500
The Initial Solution by Least Cost Method

TO X Y Z SUPPL
FROM Y
22 17 30 1400
D1 140
D2 15 35 20 1600
1250 100 250
D3 28 21 16 1200
1200
DEMAN 1250 1500 1450 4200
D
Direction Cost
Plan

D1Y 23800
D2X 18750
D2Y 3500
D2Z 5000
D3Z 19200

Total Cost 70250

3
 The Initial Solution by VAM Method

TO X Y Z SUPPL Raw
FROM Y
22 17 30 1400 5 13 13 17 17-
D1 1400
D2 15 35 20 1600 5 15 - - - -
1250 350
D3 28 21 16 1200 5 5 5 21 - - -
100 1100
DEMAN 1250 1500 1450 4200
D
col 7 4 4
- 4 4
- 4 14
- 4 -
- 17 -
Direction Cost
Plan

D1Y 23800
D2X 18750
D2Z 7000
D3Y 2100
D3Z 17600

Total Cost 69250

4
 iii. Optimal Solution
Using Stepping Stone Method- The Initial Solution by North West Corner
Method

Step 1

TO X Y Z SUPPL
FROM Y
22 17 30 1400
D1 1250 150
D2 15 35 20 1600
1350 250
D3 28 21 16 1200
1200
DEMAN 1250 1500 1450 4200
D Occupied Cells
=5=m+n-1=3+3-
1=5

Unoccupied Net Cost Changes

Cells

D1Z (30-20+35-17) = 28
D2X (15-22+17-35) = -25
D3X (28-22+17-35+20-16) = -8
D3Y (21-35+20-16) = -10

Step 2

TO X Y Z SUPPL
FROM Y
22 17 30 1400
D1 1400
D2 15 35 20 1600
1250 100 250
D3 28 21 16 1200
1200
DEMAN 1250 1500 1450 4200
D

Unoccupied Net Cost Changes

Cells

5
 D1X (22-17+35-15) = 25
D1Z (30-20+35-17) = 28
D3X (28-15+20-16) = 17
D3Y (21-35+20-16) = -10
Step 3

TO X Y Z SUPPL
FROM Y
22 17 30 1400
D1 1400
D2 15 35 20 1600
1250 350
D3 28 21 16 1200
100 1100
DEMAN 1250 1500 1450 4200
D Unoccupied Net Cost Changes
Cells

D1X (22-17+20-16+21-15) = 15
D1Z (30-16+21-17) = 18
D2Y (35-20+16-21) = 10
D3X (28-15+20-16) = 17
- There is no any negative, we can take above mentioned table as final Solution
table

- The Minimum Total Final Cost

Direction Cost
Plan

D1Y 23800
D2X 18750
D2Z 7000
D3Y 2100
D3Z 17600

Total Cost 69250

TO 1 2 3 4 PLANT
FROM CAPACITY
Q-2. 2 12 6 10 2000
1
2 14 6 3 12 1750

3 18 6 8 10 8 750

WARE HOUSE 1100 1000 2000 900

REQUIREMENTS
Both side not balanced dummy raw should be added.

TO 1 2 3 4 PLANT
FROM A B C D CAPACITY
2 12 6 10 2000
1P
2Q 14 6 3 12 1750

3R 18 8 10 8 750

Dummy 0 0 0 0 500

WARE HOUSE 1100 1000 2000 900 5000

REQUIREMENTS

The Initial Solution by North West Corner Method

7
 TO 1 2 3 4 PLANT
FROM A B C D CAPACITY
2 12 6 10 2000
1P 1100 900
2Q 14 6 3 12 1750
100 1650
3R 18 8 10 8 750
35 400
Direction Cost 0
Dummy 0 0 0 0 500
Plan 500
WARE HOUSE 1100 1000 2000 900 5000
PA 2200
PB REQUIREMENTS10800
QB 600
QC 4950
RC 3500
RD 3200
Dummy-D 0

Total Cost 25,250

8
 The Initial Solution by Least Cost Method

TO 1 2 3 4 PLANT
FROM A B C D CAPACITY
2 12 6 10 2000
250 250 900
1P 600
2Q 14 6 3 12 1750
Direction Cost 1750
Plan
3R 18 8 10 8 750
750
PA 1200
PB Dummy
3000 0 0 0 0 500
500
PC 1500
PD WARE HOUSE
9000 1100 1000 2000 900 5000
QC REQUIREMENTS
5250
RB 6000
Dummy-A 0
25,95
Total Cost 0

9
 The Initial Solution by VAM Method

TO 1 2 3 4 PLANT Raw
FROM A B C D CAPACITY
2 12 6 10 2000 4 4 4
1P 1100 900 -2

2Q 14 6 3 12 1750 3 3 3
650 1100 36
3R 18 8 10 8 750 2 2 2
Direction Cost 350 400 20
Plan Dummy 0 0 0 0 500 0 - --
500 -
PAWARE HOUSE 2200
1100 1000 2000 900 5000
PC 5400
REQUIREMENTS
QB 3900
Col 2 6 3 8
QC 3300
12 6 3 2
RB 2800
RD -
3200 2 3 2
Dummy-D 0 2 7 4
20800 2 - 4
Total Cost

10
Optimal Solutions

Using Stepping Stone Method- The Initial Solution by North West Corner Method

Step 1

Occupied TO 1 2 3 4 PLANT
Cells FROM A B C D CAPACITY
=7=m+n- 2 12 6 10 2000
1=4+4- 1P 1100 90
1=7 2Q 14 36 12 1750
101650
Unoccupied
3R Cells 18 8 Net Cost10
Changes 8 750
35 40
PC (6-3+6-12) 0
Dummy 0 = -3 0 0 0 500
PD (10-8+10-3+6-12) = 3 50
QA HOUSE
WARE (14-2+12-6)
1100 = 181000 2000 900 5000
QD (12-8+10-3) = 11
REQUIREMENTS
RA (18-2+12-6+3-10) =15
RB (8-6+3-10) = -5
Dummy-A (0-0+8-8+6-3+6-2) = 7
Dummy-B (0-6+3-10+8-0) = -5
Dummy-C (0-10+8-0) = -2

Step 2

TO 1 2 3 4 PLANT
Unoccupied
FROM Cells A B Net Cost
C Changes
D CAPACITY
2 12 6 10 2000
1 PPC (6-10+8-12)
1100 =90-8
2Q PD (10-8+8-12)
14 = -2 6 3 12 1750
QA (14-2+12-3+10-8) = 23 1750
QB (6-3+10-8) = 5
3R 18 8 10 8 750
QD (12-8+10-3) =1011 25 40
RA (18-2+12-8) = 20 0
Dummy
Dummy-A 0
(0-2+12-8+8-0) = 100 0 0 500
50
WARE HOUSE 1100 1000 2000 900 5000
11
REQUIREMENTS
Dummy-B (0-8+8-0) = 0
Dummy-C (0-10+8-0) = -2

12
Step 3

TO 1 2 3 4 PLANT
FROM A B C D CAPACITY
2 12 6 10 2000
1100 65 25
1P
2Q 14 6 0 3 12 1750
1750
3R 18 8 10 8 750
35 40
Dummy 0 0 0 0 500
50
WARE HOUSE 1100 1000 2000 900 5000
REQUIREMENTS

Unoccupied Net Cost Changes

Cells

PD (10-8+8-12) = -2
QA (14-2+6-3) = 15
QB (6-12+6-3) = -3
QD (12-8+8-12+6-3) = 3
RA (18-2+12-8) = 20
RC (10-8+12-6) = 8
Dummy-A (0-2+12-8+8-0) = 10
Dummy-B (0-8+8-0) = 0
Dummy-C (0-8+12-6+8-0) = 6

13
 Step 4

TO 1 2 3 4 PLANT
FROM A B C D CAPACITY
2 12 6 10 2000
1100 90
1P
2Q 14 6 0 3 12 1750
65 1100
3R 18 8 10 8 750
35 40
Dummy 0 0 0 0 500
50
WARE HOUSE 1100 1000 2000 900 5000
REQUIREMENTS
Unoccupied Net Cost Changes
Cells

PD (10-8+8-6+3-6) = 1
PB (12-6+3-6) = 3
QA (14-2+6-3) = 15
QD (12-8+8-6) = 6
RA (18-8+6-3+6-2) = 17
RC (10-8+6-3) = 5
Dummy-A (0-0+8-8+6-3+6-2) = 7
Dummy-B (0-8+8-0) = 0
Dummy-C (0-8+6-3+8-0) = 3

- There is no any negative, we can take above mentioned table as final Solution table

- The Minimum Total Final Cost

Direction Cost
Plan

PA 2200
PC 5400
QB 3900
QC 3300
RB 2800
RD 3200
Dummy-D 0

Total Cost 20,800

14
15
Using MODI Method- The Initial Solution by North West Corner Method

Step 1

TO 1 2 3 4 PLANT Ui
FROM A B C D CAPACITY
2 12 6 10 2000 U1=0
1P 1100 900
2Q 14 6 3 12 1750 U2=-6
100
1650
3R 18 8 10 8 750 U3=1
350 400
Dummy 0 0 0 0 500 U4=-7
500
WARE HOUSE 1100 1000 2000 900 5000
REQUIREMENTS
Vi V1=2 V2=12 V3=9 V4=7

Occupied Cells =7=m+n-1=4+4-1=7

Unoccupied Net Cost Changes

Cells

PC (6-9-0) = -3
PD (10-7-0) = 3
QA (14-2+6) = 18
QD (12-7+6) = 11
RA (18-2-1) = 15
RB (8-1-12) = -5
Dummy-A (0-2+7) = 5
Dummy-B (0-12+7) = -5
Dummy-C (0-9+7) = -2

16
 Step 2

TO 1 2 3 4 PLANT Ui
FROM A B C D CAPACITY
2 12 6 10 2000 U1=0
1P 1100 900
2Q 14 6 3 12 1750 U2=-11
1750
3R 18 8 10 8 750 U3=-4
100 400
250
Dummy 0 0 0 0 500 U4=-12
500
WARE HOUSE 1100 1000 2000 900 5000
REQUIREMENTS
Vi V1=2 V2=12 V3=14 V4=12

Unoccupied Net Cost Changes

Cells

PC (6-14-0) = -18
PD (10-0-12) = -2
QA (14-2+11)=23
QB (6-12+11) = 5
QD (12-12+11) = 11
RA (18-2+4)= 20
Dummy-A (0-2+12) = 10
Dummy-B (0-12+12) = 0
Dummy-C (0-12+12) = 0

17
 Step 3

TO 1 2 3 4 PLANT Ui
FROM A B C D CAPACITY
2 12 6 10 2000 U1=0
1P 1000 1000
2Q 14 6 3 12 1750 U2=9
1750
3R 18 8 10 8 750 U3=16
400
100 250
Dummy 0 0 0 0 500 U4=8
500
WARE HOUSE 1100 1000 2000 900 5000
REQUIREMENTS
Vi V1=2 V2=12 V3=-6 V4=-8

Unoccupied Net Cost Changes

Cells

PC (2-2-0) = 0
PD (10-0+8) = 18
QA (14-12-9)=-7
QB (6-12-9) = -15
QD (12+8-9) = 11
RB (8-12-16)= -20
Dummy-A (0-12-8) = -20
Dummy-B (0-12-8) = 20
Dummy-C (0-8+6) = -2

18
 Step 4

TO 1 2 3 4 PLANT Ui
FROM A B C D CAPACITY
2 12 6 10 2000 U1=0
1P 1000 1000
2Q 14 6 3 12 1750 U2=-1
1750
3R 18 8 10 8 750 U3=6
500
250
Dummy 0 0 0 0 500 U4=-2
100 400
WARE HOUSE 1100 1000 2000 900 5000
REQUIREMENTS
Vi V1=2 V2=12 V3=4 V4=2

Unoccupied Net Cost Changes

Cells

PC (2-2-0) = 0
PD (10-2-0) = 8
QA (14-2+1)=13
QB (6-12+1) = -5
QD (12-2+1) = 11
RA (18-2-6)= 10
RB (8-12-6) = -10
Dummy-B (0-12+2) = -10
Dummy-C (0-4+2) = -2

Q-3.

X Y Z SUPPLY
TO
FROM
A 25 80 60 300

B 40 35 75 400

C 50 75 95 500

DEMAN 250 550 400 19 1200

D
 i. The Initial Solution by Least Cost Method

X Y Z SUPPLY
TO
FROM
A 25 80 60 300
250 50
B 40 35 75 400
400
C 50 55 95 500
150 35
DEMAN 250 550 400 1200
D
Direction Cost
Plan

AX 6250
AZ 3000
BY 14000
CY 8250
CZ 33250

Total Cost 64750

20
 ii. Optimal Solutions
Using Stepping Stone Method- The Initial Solution by Least Cost Method

X Y Z SUPPLY
TO
FROM
A 25 80 60 300
250 50
B 40 35 75 400
400
C 50 55 95 500
150 35
DEMAN 250 550 400 1200
D

Occupied Cells =5=m+n-1=3+3-1=5

Unoccupied Net Cost changes

Cells

AY (80-60+95-55)=60
BX (40-25+60-95+55-35)=0
BZ (75-95+55-35)=0
CX (50-25+60-95)=-10
Step 2

X Y Z SUPPLY
TO
FROM
A 25 80 60 300
300
B 40 35 75 400
400
C 50 55 95 500
250 150 10
DEMAN 250 550 400 1200
D

21
 Unoccupied Net Cost changes
Cells

AX (25-60+95-50)=10
AY (80-60+95-55)=60
BX (40-35+55-50)=10
BZ (75-95+55-35)=0
- There is no any negative, we can take above mentioned table as final Solution table

- The Minimum Total Final Cost

Direction Cost
Plan

AZ 18000
BY 14000
CX 12500
CY 8250
CZ 9500

Total Cost 62250

22