The Des Moines plant of Tri-B Corp. has three fabrication departments with each producing a single unique product with equipment that is dedicated solely to its product. The three products are moved to four assembly departments where they are assembled. Although any of the three products can be processed in any of the assembly departments, the materials handling and assembly costs are different because of the varying distances between departments and because of different equipment. Each fabrication and assembly department has a different monthly capacity, and it is desirable that each department operate at capacity. The variable costs and capacity for each department are shown below.
How many units of each product should be moved from each fabrication department to each assembly department to minimize total monthly costs? (Use the minimum cost method to find an initial feasible solution and the transportation simplex method to find an optimal solution.) Compute the optimal total monthly cost.
Dept. A to Dept. 4 = 9000 units
Dept. B to Dept. 3 = 14,000 units
Dept. B to Dept. 4 = 3000 units
Dept. C to Dept. 1 = 3000 units
Dept. C to Dept. 2 = 10,000 units
Dept. C to Dept. 3 = 1000 units
Total shipping cost = $23,500.00
You might also like to view...
Describe the various methodologies in accounting for leases
There is no right to a jury trial in an equitable action
Indicate whether the statement is true or false
The book, Leadership Development in Balance (2005), goes over the author’s viewpoints about the research on inherited and learned leader behaviors. According to the author, this research shows that
a. the concept that people are born with certain leadership predispositions and abilities is a myth b. the personality traits he describes are the key drivers behind leadership success and that it is vain to believe that people can develop leadership skills c. leaders are both MADE and Born d. once people reach adulthood their leadership style is set and is not longer susceptible to being changed by the environment
If a customer's debit card is lost or stolen and used without his or her permission, the customer shall be required to pay no more than $50 in any event
Indicate whether the statement is true or false