- An Electrical Company has three workshops in Koforidua, Accra and Kumasi. These workshops produce the following quantities of electric fan.
Workshops Monthly production (units)
The monthly demand for these fans in three towns: Sunyani, Cape Coast and Ho is given below:
Destination Weekly Demand (units)
Cape Coast 110
The unit transportation costs per unit (in GH¢000) from the sources to the destinations are as shown:
- Using practical examples from the field of business compare and contrast the concept of balance and unbalance transportation problem. Illustrate your understanding of these concepts by discussing and explaining possible four reasons for balance or unbalance transportation problem using a practical case in industry.
- Formulate a linear programming (LP) model.
- The model in (A) was solved using Solver and part of the Solver output is shown below. Use it to answer the questions that follow.
|Cell||Name||Original Value||Final Value|
|$D$4||Koforidua Cape Coast||0||0|
|$D$5||Accra Cape Coast||10||10|
|$D$6||Kumasi Cape Coast||100||100|
(i). As a management, science student the MD of the company seeks your expert advice on ways in which to determine the optimal transportation rule. Advise the MD, providing detailed explanation using the table above. Write your answer in a form of a report to the MD.