Operations Management: Other Operations Management Problems – #29461


Question: Question 5: A company manufactures office desks at two locations: O’Connor and Murton. The firm distributes the desks through regional warehouses located in Auburn, Stirling and Australind. Estimates of the monthly supplies available at each factory and the monthly office desk demands at each of the three warehouses are shown in the following table:-

Factory Supply Capacity
(# desks per month)
O’Connor 130
Murton 120

The desks are shipped to three warehouses.

Warehouse Number of Desks Required per month
Auburn 60
Stirling 120
Australind 30

To ship office desks from a factory to a warehouse involves transportation costs (dollar costs per desk shipped).

To
From Auburn Stirling Australind
O’Connor 2 1 3
Murton 3 1 4

All costs are in dollars.

a) Solve this problem using Excel. Write down the numbers desks shipped from each factory to each warehouse and the total cost of shipping involved (i.e. form a worded conclusion). (1.5 marks.)

b) Is this a balanced or unbalanced transportation problem? Show the signs for the demand and supply constraints (0.5 mark).

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