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  • Deguzman & Sotto - 1A29

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    MARIA CONCHITA SOTTO
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    This document presents a linear programming problem to optimize the shipment of plants from four suppliers (Plants A, B, C, and D) to three outlets (Outlets X, Y, and Z) to minimize cost. It shows the supply from each plant and demand at each outlet. It calculates the improvement index and initial shipment cost, then modifies the plant-outlet assignments and calculates the final shipment cost, which is $312,500, an improvement over the initial cost of $417,500.

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    Exercises

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    Deguzman & Sotto- 1A29

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    This document presents a linear programming problem to optimize the shipment of plants from four suppliers (Plants A, B, C, and D) to three outlets (Outlets X, Y, and Z) to minimize cost. It shows the supply from each plant and demand at each outlet. It calculates the improvement index and initial shipment cost, then modifies the plant-outlet assignments and calculates the final shipment cost, which is $312,500, an improvement over the initial cost of $417,500.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    2 views3 pages

    Deguzman & Sotto - 1A29

    Uploaded by

    MARIA CONCHITA SOTTO
    This document presents a linear programming problem to optimize the shipment of plants from four suppliers (Plants A, B, C, and D) to three outlets (Outlets X, Y, and Z) to minimize cost. It shows the supply from each plant and demand at each outlet. It calculates the improvement index and initial shipment cost, then modifies the plant-outlet assignments and calculates the final shipment cost, which is $312,500, an improvement over the initial cost of $417,500.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    De Guzman, Alexandrea Mari

    Sotto, Maria Conchita C.


    1A29 S<D
    Plant Outlet X Outlet Y Outlet Z Supply

    2000 4000 1500


    A 45
    45 ? ?
    3000 3500 4500
    B 5 55 ? 60

    4000 1000 2500


    C 20 60
    ? 40
    0 0 0
    Dummy Plant ? ? 10
    “D” 10

    Demand 50 75 50 175

    Improvement Index Initial Shipment Cost


    A to Y Formula= (Initial Route) Quantity X Cost (1st step)
    = 4000 – 2000 + 3000 – 3500 Add all the amounts from the acquired costs
    = 1500 from the routes

    A to Z Route Quantity Cost Amount


    A to X 45 2000 90,000
    = 1500 – 2000 + 3000 – 3500 + 1000 – 2500 B to X 5 3000 15,000
    B to Y 55 3500 192,500
    = -2500
    C to Y 20 1000 20,000
    B to Z C to Z 40 2500 100,000
    D to Z 10 0 0
    = 4500 – 2500 + 1000 – 3500
    Initial Shipment Cost
    = -500
    = 90,000 + 15,000 + 192,500 + 20,000 + 100,000
    C to X
    = 417,500
    = 4000 – 3000 + 3500 – 1000
    40
    = 3500 -45 + 5

    D to X 45
    5
    v + 3500 – 1000 + 2500 – 0 -55 15
    = 0 – 3000
    = 2000 20 -40 60 -
    D to Y
    = 0 – 1000 + 2500 – 0

    = 1500
    Plant Outlet X Outlet Y Outlet Z Supply

    2000 4000 1500


    A 45
    5 ? 40
    3000 3500 4500
    B 45 15 ? 60

    4000 1000 2500


    C 60 60
    ? ?
    0 0 0
    Dummy Plant 10
    “D” ? ? 10

    Demand 50 75 50 175

    Improvement Index
    A to Y
    = 4000 – 2000 + 3000 – 3500
    45
    -5 40 -
    = 1500
    B to Z 45 50
    v -15 10
    = 4500 – 1500 + 2000 – 3000
    + -10 5 5
    = 2000
    C to X
    = 4000 – 3000 + 3500 – 1000
    = 3500
    C to Z
    = 2500 – 1500 + 2000 – 3000 + 3500 – 1000
    = 2500
    D to X
    = 0 – 2000 + 1500 – 0
    = -500
    D to Y
    = 0 – 0 + 1500 – 2000 + 3000 – 3500

    = -1000
    Plant Outlet X Outlet Y Outlet Z Supply

    2000 4000 1500


    A ? ? 45
    45
    3000 3500 4500
    B 50 10 ? 60
    c
    4000 1000 2500
    C ? 60 ? 60

    0 0 0
    Dummy Plant ? 10
    “D” 5 5

    Demand 50 75 50 175

    Improvement Index Final Shipment Cost


    A to X Formula= (Final Route) Quantity X Cost (1st step)
    = 2000 – 3000 + 3500 – 0 + 0 – 1500 Add all the amounts from the acquired costs
    = 1000 v from the routes

    A to Y Route Quantity Cost Amount


    A to Z 45 1500 67,500
    = 4000 – 0 + 0 – 1500 B to X 50 3000 150,000
    B to Y 10 3500 35,000
    = 2500
    C to Y 60 1000 60,000
    B to Z D to Y 5 0 0
    = 4500 – 3500 + 0 – 0 D to Z 5 0 0

    = 1000
    Final Shipment Cost
    C to X
    = 67,500 + 150,000 + 35,000 + 60,000
    = 4000 – 3000 + 3500 – 1000
    = 312,500
    = 3500
    Therefore, the least cost for the shipment of the
    C to Z
    plants to the three outlets is 312,500
    = 2500 – 0 + 0 – 1000
    = 1500
    D to X
    = 417,500
    = 0 – 3000 + 3500 – 0
    = 500

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