Operation Research 2 [CA] (ADTT5107)
Administrative Techniques - ADT
Semester: First Semester
Level:
Year: 2017
Test One
Department of Administrative Techniques
Operations Research Time Allowed 1hr
Question One
UCB has decided to introduce a new product. The new product may be distributed
through any combination of three (3) warehouses (W
1
, W
2
and W
3
) available to the
company. The available annual capacities for the company are 100 units at plant Si, 200
units at plant S
2
and 100 units at plant S
3
. The three (3) major combinations of customer
demand are located at D
1
, D
2
and D
3
, demand requirements each year are 90 units, 80
units and 90 units for D
1,
D
2
and D
3
respectively. The unit product costs amount to 3frs,
4frs and 1frs, handling cost at the warehouse amount to 2frs, 3frs and 2frs at W
1
, W
2
and
W
3
respectively. The unit shipment cost from plant to warehouse and unit delivery cost
from warehouse to customers are as follows;
W
1
W
2
W
3
D
1
D
2
D
3
S
1
6
6
4
W
1
3
5
10
S
2
5
5
7
W
2
5
3
9
S
3
13
4
3
W
3
2
4
6
a) Tabulate the cost linking all sources to all destinations through all warehouses
(3marks)
a) Determine the optimal product and distribution schedule (5marks)
b) What is the optimal transport cost (5marks)
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