1. An Electrical Company has three workshops in Koforidua, Accra and Kumasi. These workshops produce the following quantities of electric fan.

Workshops                                          Monthly production (units)

Koforidua                                                                        130

Accra                                                                                70

Kumasi                                                                             100

The monthly demand for these fans in three towns: Sunyani, Cape Coast and Ho is given below:

Destination                                                Weekly Demand (units)

Sunyani                                                                                    80                                                                                                                                             

Cape Coast                                                                               110                                                                                        

Ho                                                                                            60  

The unit transportation costs per unit (in GH¢000) from the sources to the destinations are as shown:

SunyaniCape CoastHo
  1. 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.
  1. Formulate a linear programming (LP) model.  
  1. 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.
Adjustable Cells  
 CellNameOriginal ValueFinal Value
 $C$4Koforidua Sunyani8080
 $D$4Koforidua Cape Coast00
 $E$4Koforidua Ho00
 $C$5Accra Sunyani00
 $D$5Accra Cape Coast1010
 $E$5Accra Ho6060
 $C$6Kumasi Sunyani00
 $D$6Kumasi Cape Coast100100
 $E$6Kumasi Ho00

(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.

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