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Assignment 8 Make or Buy and Transportation
Assignment 8 Make or Buy and Transportation
Problem 1:
Problem 2:
A sudden increase in the demand for smoke detectors has left Acme Alarms with insufficient capacity to meet demand. The
company has seen monthly demand from its retailers for its electronic and battery operated detectors rise to 20,000 and 10,000,
respectively. Acme’s production process involves three departments: fabrication, assembly, and shipping. The relevant
quantitative data on production and prices are summarized below:
The company also has the option to obtain additional units from a subcontractor, who has offered to supply up to 20,000 units per
month in any combination of electric and battery-operated models, at a charge of $21.50 per unit. For this price, the subcontractor
will test and ship its models directly to the retailers without using Acme’s production process.
Transportation Problem
(Formulate and solve with solver)
Problem #3
The fancy group owns factories in four towns (W, X, Y and Z) which distribute to three Fancy retail dress
shops (in A, B and C). Factory availabilities, projected stores demands, and unit shipping cost are
summarized in the table that follows:
To A B C Factory
availability
From
W Tk. 8 12 Tk. 4 82
X 5 6 8 38
Y 7 9 21 46
Z 14 3 7 29
Store Demand 120 44 31
Formulate a linear programming model for this problem and solve with solver.
Problem #4
Joy company currently maintains plant in Gazipur, Mymensing and Faridpur that supply major
distribution centers in Dhaka, Rajshahi, Comilla and Chittagong. Because of an expanding
demand, Joy has decided to open a forth plant and has narrowed the choice to one of two
areas – Feni or Savar. The pertinent production and distribution costs, as well as the plant
capacities and distribution demands, are shown in the accompanying table:
Distribution Dhaka Rajshahi Comilla Chittagong Capacity Unit Production
cost
Plant
Gazipur Tk. 25 Tk. 55 Tk. 40 Tk. 60 15000 Tk. 48
Mymensing 35 30 50 40 6000 50
Faridpur 36 45 26 66 14000 52
Feni (Proposed) 60 38 65 27 11000 53
Savar (Proposed) 35 30 41 50 11000 49
Forecasted Demand 10000 12000 15000 9000
Which of the new possible plant should be opened?
Problem #5