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Finnish Furniture TRANSPORTATION ALGORITHM Homework Solution STRATEGIC RESOURCE ALLOCATION and PLANNING MGMT E-5050.

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Presentation on theme: "Finnish Furniture TRANSPORTATION ALGORITHM Homework Solution STRATEGIC RESOURCE ALLOCATION and PLANNING MGMT E-5050."— Presentation transcript:

1 Finnish Furniture TRANSPORTATION ALGORITHM Homework Solution STRATEGIC RESOURCE ALLOCATION and PLANNING MGMT E-5050

2 Finnish Furniture Finnish Furniture manufactures tables in facilities located in 3 cities - Reno, Denver, and Pittsburgh. The tables are then shipped to 3 retail stores loca- ted in Phoenix, Cleveland, and Chicago. Management wishes to develop a distribution sche- dule that will meet the demands at the lowest possi- ble cost. The shipping cost per unit from each of the sources to each of the destinations is shown in the following table:

3 Finnish Furniture from / toPhoenixClevelandChicago Reno Denver Pittsburgh1812 The available supplies are: 120 units from Reno 200 units from Denver 160 units from Pittsburgh The store demands are; 140 units from Phoenix 160 units from Cleveland 180 units from Chicago REQUIREMENT: 1.How many units should be shipped from each facility to each of the retail stores if cost is to be minimized? 2. What is the total cost?

4 Finnish Furniture Finnish Furniture has experienced a decrease in the demand for tables in Chicago; demand has fallen to 150 units. REQUIREMENT: 1.What special condition would exist? 2.What is the minimum cost solution? 3.Will there be any units remaining at any of the manufacturing facilities?

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