Operations Research (TY S Sen, 202 1) The schedule of BMS Ltd, company are given below: : 1} 3 Pall 1 [G|H as Department available a 13 | % [12 [21 18 B 18 [23 [14[ 9 a7 ic 23 | 15 | 12] 13 21 Pallet Required | 14 | 12 | 23 17 Find IBFS by: (@) North West Comer Method (NWCM) (0) ©"Least Cost Method (LCM) (e) Vogel's Approximation Method (VAM) {@)" ° Given below is an intermediate table in the solution of a transponay problem. With reference to ths table, find the answers to the fcgyg questions: [ “Destination — ; D D: Ds D, \Factory sane A a} 8 7 ae {S000 5000 2 13 g in z soso] c ie 10 2 rr 7000) {S00 lisop —) Demand ooo | 5500 | 4500 | 90° (a) _ Is the solution non ~ degenerate? {b) Is this solution optimum? If not, obtain the optimum solution, Aso find total cost. (3) Peculiar Outsourcing Company Ltd. has production centers at Mumbai Chennai, and Kolkata. The company has its distribution center @ Ahmedabad, Bhopal, Bangalore and Goa. Production costs are egal and fixed at all three production centers, however the varable cos a only the transportation costs. The monthly production at Mumba Chennai and Kolkata are 10,000 units, 12,000 units and 5000 unis respectively. The monthly demand at company's four distribution cess viz, Ahmedabad, Hhopal, Bangalore and Goa are 12000 units203 ‘its, 4000 units and 3000 units respectively. The transportation cost per nit (rom different production centers to different distribution centers are in the following table. Distribution centers Ahmedabad | Bhopal | Bangalore | Goa 6 4 14 2 ia 10 4 6 a 10 8 10 Find IBFS by using VAM and obtain an optimum transportation schedule so as to minimize the transportation cost. If the transportation cost from production center Kolkata to distribution center Bangalore is changed from Rs. 8 per unit to Rs. 12 per unit, what will be the effect on the transportation schedule? Will it change? If yes, state the reason. If the company wants to meet the requirement of at least 2000 units at its Goa distribution center only from Mumbai, will the optimum solution obtained in a change? If so, find the new optimum transportation schedule and its effect on total Cost? (BMS April 2004) ‘A company is transporting its units from three manufacturing plants P;, P. and P; to four distribution centres D,, Dp, D; and D,, The supply and demand for units with unit cost of transportation (in Rs.) and the schedule followed from plants to distribution centres are given below: (The numbers which are in citcle indicates number of units transported from plant to distribution centre). fanufacture D, D Ds Ds Plants —~_ 10} 11] 7 4 @ oT 7 is/ee. 6 ft (i (ii) 28 eel 9 8 i) se _ | v Demand in nis 15 30 u 14 | 70 {a) Test the above solution for optimality, (0) Ifsolution is not optimal find optimal solution. (MU, April, 2016)Operations Research (Ty By 7 S 208 (6) The following is iermediate table in the solution of , a poten Distribution Centre mate, Ett T 1 m7 : [Son pal smea(?s| age a c ke) | 6 ¥. (2) 7 fz Z vale) @ Demand 8 7 2 6 Figures in the top right comer of every cell present the cost oft lin Rs) one unt plants to distribution centres. Allocations are circled a ‘Answer the following questions (giving reason). (a) Isthe solution optimal? If not, find the optimal solution, (b) Does the problem have an alternate solution? If so, show altemate opting solution. (c)_ In the optimal solution, if the cost for route Z - IV is reduced from Rs, 135 Rs, 11, will the optimality change? (M.U., April 2015) (6) Acement company has three factories which manufacture cement whi is then transported to four distribution centers. The quantity of monty production of each factory, the demand of each distribution center ani the associated transportation cost per quintal are ¢'ven as follows: Md x Y Zz Monthly Production (in quintals) AG|a0 [18 3 4 700 Factories [|B | 7 9 5 | 8 000 c | .6sg4 10 [ia | 8 10,000 Monthly Demand te quia) 6,000 | 6,000 | 8,000 | 5,000 a (a) Suggest the optimal transportation schedule. (©) Is there any other transportation schedule which i el attractive? If so, find it. (Mu, Apsil 208205 zany has 3 plants and 4 warehouses. The supply and demand in «and corresponding transportation costs in Rs. Per unit are given taiow. On the basis of past experience, following dispatch schedule has Warehouses (Transportation cost in Rs, Per unit) 1 W Mm Vv pio 8 i 12 {5000 so 2 13 6 [10 Supply 150 g 10 2 “ 4 7) 500 (15m 9000 7000 5500 4500 3000 | 20,000 ‘Answer the following questions with justification: fa) Is the above solution optimal? Find the optimal solution. {o) Caleulate the total minimum transportation cos as per the optimal solution. {c)__ Ifthe transportation cane offers 10% discount on route C to Ill, should the management accept the offer? Analyze the optimal solution to find answer. (MLU., April 2010) ) Accompany has 3 warehouses WI, W2, and WS from where it supplies product to 3 markets M1, M2, and M3, Availabilty at warehouses is 2000, 1500 and 1000 units. Market requirements are 1200, 1800 and 1000 units. Profit Potential per unit from each warehouses to each market is as follows. farket ~ M, b Warehouse ne = Ww. 5 22 zB W, 15 20 18 Ws, 18 17 16 Find optimal transportation schedule, to maximize the total profit. (MU, April, 2014)Operations Rese, arch (Ty ‘“ By, S$ ‘A Company has 3 plants and 4 repais wareh Demand in units and corresponding es The» are given below. On the basis of past ee i a sehedule has been finalize. :flogng 206 Warehouses (Transportation cost in Rs. Per unit) right comer of every call represent the cost of Figures in the op jlant to warehouse. Allocations are circled. {in Rs.) one unit from PI ‘Answer the following questions: fa) Isthe solution degenerae? {by Improve the above sohtion fo optimally. Find the minum aniot transportation cost (e)_ Does the problem has aternateulre Optimal slain? ‘Show alterat/mlple optimal solution. ae (a) Comment ypon the managerial signiticance of altematelnipe ak Ka optima solution with reference 0 the given problem eShop Rm see (a) Inte oplima slion the cost for ute wis reduced ie (mpi 201 Ba 7ios. Sli he optimality change? (10) Acompary has 3 plans and 3 warehouses. The se and eomesponding tansporation COM ‘below. On the bass of past. Experience, following been finalized. supoy and erat uae207 Warehouses ‘ Su transportation costs in Rs, Per unit Cie 1 a F (In Units) [a0 70 300 300) 40) 400 300 300 pjese mprove the above solution fo optimality 0 ete i oa by you and answer the following guestions with justfcaio fh. Isthere any altemate optimal solution? i) (iid Find the total minimum transportation cost. Ifthe route C to Il is used, by how much amount the total transportation cost would go up for every unit transported? {iv)_ What should be the minimum decrease in the unit cost ofthe cell A-II so that the company will using this route? (M.U,, Oct. 2011) 11) Fm the warehouses Wi, Wy & Ws the stocks are tobe transported to four markets My, Mo, My and Mg, The supplies from warehouses are 300, 200 and 250 tons respectively. Whereas the requirements of markets are 05, 175, 100, 150 tons respectively. The cost matrix and inital solution is given in the following table: rket Warehouse~ Ma Mz Ms (M) wy fey pean, 10 16 20 300) Wy, 16 6 17 25 — 2) Ws z 8 21 | po} fs eo) B__|@208 Perform the post opportunity analy o answer the following: (a) _Isthe above solution feasible? {b) _Isthe solution optimal? Is there more than one to (0) Isitdegenerate? nm? (2) Calaate the opportunity cost of transporting M Me Ui r - fe) The mange foal tarp On unt hoy " the rate of increase in the cost per unit Wy, mig (Ifa transport carrier offers 20% discount On rote % provided at least 20 units are transported this mae Way management accept the offer? * Shou ‘ ()Toimpove te contin of the malts it dete ‘advertising campaign. However, due to budget constaing mail canbe chosen at present. Dei in when og advertising campaign should be undertaken? te (BMS, MU, og, 2m) ANSWERS Ans. (1) (a) NWCR = Rs.1001 (0) LCM =Rs.881 (J VAM=Rs8I1 (2) (a) Yes, the solution is non - degenerate (b) Total Cost = Rs.1,62,500 (3) (@) The optimum cost is Rs, 1,58,000 (b) I the transportation cost from production centre in Kolkata to the distibtion centre in Bangalore is changed from Rs. 8 per unit to RS. 12 per unit, there wil be no change in the transportation cost as the reduction is of Rs.4 per unit. But the ost is Rs.12, i; 244 16 which is positive, thus there is no change in the transportation cost.0 6 ® @ o 0 @) i) fal bh @ yen a Mumbai 10 Go, the cl evaluation * rm J uel means that for every unit ofthe produt feet ie. 12 atl ineease bY RS. 12 per unt ‘ansported, the ence if he eOMPARY Wan 10 transport ap least fom Mumbal to G2 the cost wil increase by 1p ae ps. 24,000 . New cost = 1,58,000 + 24,000 = Rs. 1,82,000 pin Transportation Cost = Rs, 527 Cptimum Soltion = Optimum Transportation Cost = Rs. 198 ‘here is no altemate optimal solution ifthe cost is reduced from 13 to 11, the present solution wil pot remain optimal. optimal Cost = Rs. 1,79,000 No, There is no other transportation schedule which s equally tractive asthe solution is unique ie. there is no altemate optimum solution because there is no 2er0 A cost Optimum Solution = 162,500 Total minimum transportation cost = Rs, 1,62,500 New Cost = Rs. Shunt 10% of 12 = Rs. 1.20 «. The decrease is not sufficient The management should not accept the offer. Optimum Profit = Rs. 86,700 (a) 0 ic) The solution is degenerate Minimum (optimum) transportation cost = Rs. 5,600 There is an altemate optimal solution. Optimum Solution = 5,600210 it tiple optimal (a) Since there are mul Solutions adopt any of the schedules which ay the pe transportation cost. Offer the (e). There wil be no effect on the optimal sa \ reduced from Rs. 7 t0 Rs. 5 since ther Mon it Rs. 2 per unit. Tedues Alon tt 5 «Epsilon (e) is placed in the cell C-W1 to rem, sete Gop wil be formed along the folowing path; ‘AW, -> AW > CW > CW, Gale Gag) = Minimum negative value = € (20) (a) Warehouses (Transportation costs in Rs. Per Plants unit) 1 Hl ur 2 8 [30 300) © e (So (G00) z @ 30] [as Demand (intnis) | 300 he 300, v w=40 [w= 36 [ua s8 No Degeneracy Optimal Solution = Rs. 26,400 (©) (i) There is no altemate optimal solution since no A vale en (i) Total minimum transportation cost = Rs. 26,400 (iil) If the route C to Il is used, the transportation ons! wall increase by Rs. 61 (iv) If the company wants to use the route A Il, the cast ont route should decrease by atleast Rs. 34 s New cost for route A II will be present cost ~ 34 = 70- #1 —2 and = 325 +175 + 100 + 180 = 150 = 300 + 200 + 250 = 7590 uP? poblem sbalanced __ The solutions feasible since demand = supply ica ay valve of 8 8 nO eQUal 16 2t0, hence one isnot posible pFS = 7675 ‘ore optimum, in Condition (Checking Degeneracy) pena 1 = No.of occupied cl ge4-1 =6 ‘The solution is not degenerate ‘The opportunity cost of transporting one unt from Wh to Ma is Rs, 3, ithe manager is forced to transport one unit from We to My the cost wil increase by Rs. 3. t ‘The management should accep the offer since it wl reduce the cost by Rs. 2 per unit Hence for 20 units, the cost will reduce by Rs, 40 For advertisement campaign, market Mz should be selected since its transportation cost is least ie. Rs. 6. goQoa