Quantitative Business Analysis

Assignment #5 / Chapter 6

Submitted to Dr. Faisal G. AL-Shamari

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 Q1 The Krampf Lines Railway Company specializes in coal handling. On Friday, April
13, Krampf had empty cars at the following towns in the quantities indicated:

TOWN SUPPLY OF CARS

Morgantown 35
Youngstown 60
Pittsburgh 25

By Monday, April 16, the following towns will need coal cars as follows:

TOWN DEMAND FOR CARS

Coal Valley 30
Coaltown 45
Coal Junction 25
Coalsburg 20

Using a railway city-to-city distance chart, the dispatcher constructs a mileage table for
the preceding towns. The result is shown in the table below. Minimizing total miles over
which cars are moved to new locations, compute the best shipment of coal cars.

TO COAL COALTOWN COAL COALSBURG

FROM VALLEY JUNCTION
MORGANTOWN 50 30 60 70
YOUNGSTOWN 20 80 10 90
PITTSBURGH 100 40 80 30

Solution:

COSTS coal valley coal town coal junction coal spurge Supply
Morgantown 50 30 60 70 35
Youngstown 20 80 10 90 60
Pittsburgh 100 40 80 30 25
Demand 30 45 25 20 120 \ 120

Shipments coal valley coal town coal junction coal spurge Row Total
Morgantown 35 35
Youngstown 30 5 25 60
Pittsburgh 5 20 25
Column Total 30 45 25 20 120 \ 120

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  X12 = 35
X21 = 30
X22 = 5
X23 = 25
X32 = 5
X34 = 20
TOTAL COST = 3100

 25 cars should be shipped from Youngstown to Coal Junction.

 Coaltown’s demand of 45 cars is satisfied. Among the cars shipped to Coaltown,

35 are from Morgantown, 5 from Youngstown, and 5 from Pittsburgh.

Q2 The three blood banks in Franklin County are coordinated through a central office
that facilitates blood delivery to four hospitals in the region. The cost to ship a standard
container of blood from each bank to each hospital is shown in the table below. Also
given are the biweekly number of containers available at each bank and the biweekly
number of containers of blood needed at each hospital. How many shipments should be
made biweekly from each blood bank to each hospital so that total shipment costs are
minimized?

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 Solution:
COSTS hospital 1 hospital 2 hospital 3 hospital 4 Supply
Bank 1 8 9 11 16 50
Bank 2 12 7 5 8 80
Bank 3 14 10 6 7 120
Demand 90 70 40 50 250 \ 250

Shipments hospital 1 hospital 2 hospital 3 hospital 4 Row Total

Bank 1 50 50
Bank 2 10 70 80
Bank 3 30 40 50 120
Column Total 90 70 40 50 250 \ 250

The shipment should be made biweekly from

X11= 50
X21 =10
X31= 30
X22= 70
X33= 40
X34= 50

The minimized cost is 2020 biweekly of shipping in total.

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