Question

UESTION 4 (TOTAL: 12 MARKS MS Industries Corporation is producing hard disk drives to be supplied to four distributiorn warehouses in Manila, Bangkok, Jakarta and Singapore. It has three manufacturing plants, located in Hyderabad, Yangon and Shanghai that supply the warehouses. The current shipping cost per unit (in S) from each plant to the respective warehouses, the demands at each warehouse, and the production capacity at each manufacturing plant are shown in the table below: Manila BangkokJakarta Singapore| Supplv 2000 Hyderabad 4 2500 Yangon 2200 Shanghai 2000 2000 Demand 1000 1200 The company has appointed you to plan the most economical shipping cost from each manufacturing plant to the respective warehouses. a.Using the North West Corner Rule, find the initial solution to this problem. Write down the initial total cost. (2 marks) b. Starting with the initial solution obtained by north-west corner rule in (a), use MODI (Modified Distribution) and Stepping Stone Method to find the optimal solution. Write down the optimal solution and minimum cost. (10 marks)

Answer 1

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