Problem Solving 1.

The Fraser silver mine company has two operating mines and three distributing warehouses located in different parts of the country. The company ships the ore by trucks. The capacity of mine A is 500 tons a week and that of mine B is 1, 300 ton per week. The weekly sales potential of the three warehouses is 1, 200 tons, 500 tons, and 700 tons. The shipping cost per ton from each mine ro each warehouse is given below. Find the best shipment schedule if the companys objective is to minimize the transportation cost. 2. A company has factories at A, B, and C which supply warehouses D, E, and F. monthly factory capacities are 220, 140, and 150 respectively. Monthly requirement are 220 units each and the shipping costs are follows: Determine the optimum solution for this company to minimize shipping cost. 3. At peak traffic hours the manager Metropolitan Transportation service is frequently faced with the problems of dispatching relief buses from three garages of the company of three key locations of the traffic network. The data below show the number of available buses, the number of buses which is usually needed at each location and the expected number of minutes required for a bus to reach a location in a possible route. How should the manager allocate his buses in order to minimize the total time required to reach the three relief locations? 4. A company called Malabanan Plumbing makes, among other products, a full line of bathtubs. The company has three warehouses from which bathtubs are to be delivered to costumers from three locations. Data are presented below: Available bathtubs from Cubao is 10 units , 14 units from Pasig, and 20 units from Caloocan; while orders from Makati branch is 15 units, 14 units in Cavite, and 20 units from San Juan. Set the initial table by the following method: 1. Northwest Corner Rule 2. Minimum cost method 3. Vogels Approximation Method In each initial, design an optimum schedule of shipment that will minimize the total cost of transportation using the Stepping- Stone Method. State yoyr decision. 5. The rent-A-Car company has accumulated extra cars at three of its car outlets, as shown below: The firm wants to transfer cars from outlets with extra to those with shortage at the minimum total cost. The following cost of transporting these cars from cities to cities have been determined. A. Find the initial table using all the following methods: 1. Nortwest Corner Rule 2. Minimum Cost Method 3. Vogels Approximation Method B. Find the optimum table using the Stepping-Stone Method in each of the initial table above. C. Compare the resulting optimum table in each solution. What is the implication of getting different results yet the same minimum cost? 6. The Home Care Inc. must purchase fuel for heating each of the four apartmen buildings owned by the company. The company has estimated that it needs 3, 4, 7, and 5 thousnad gallons of fuel

each month. Three suppliers, Anah, Daryl and Jad can each supply 5, 7, and 8 thousand gallons each month. Their delivered prices per gallon are shown in the table below. Find how much fuel should be bought from each dealer. 7. An electronics firm has a production plant in each three cities:Marikina, pasig, and Valenzuela. It has a customer outlet in each of the three cities: Caloocan, Mandaluyong and Makati. The cost in pesos of transporting a receiver from each plant to each outlet is shown below. The table also shows customer demands at each outlet and production capacities of each Plant. The unit production costs are P100, P 110, and P95 at plants in Marikina, Pasig, and Valenzuela, respectively. Obtain a minimum cost distribution plan. 8. Lamr Real Estate Investment Corporation has identified four small apartment buildings in which it would like to invest. Lamar has approached three savings and loan companies regarding financing. Because Lamar has been a good client in the past and has maintained a high credit rating in the community, each savings and loan company is willing to consider her providing all or part of the mortgage loan needed on each property. Each loan officer has set differing interest rates on each property (rates are affected by the property and desire by the individuals saving and loan to finance various size buildings), and each loan company has placed a minimum credit ceiling on how much it can lend Lamar Real Estate in total. This information is summarized in the accompanying table. Each apartment buildings is equally attractive as an investment to LAMAR, so it has decided to purchase all buildings possible at the loest total payment of interest. From which savings and loan companies should Lamar Real Estate borrow to purchase these buildings? More than one savings and loan companies can finance the same property. 9. Because of the total local market conditions, the receivers in Problem No. 7 sell for P130, P140, and P120 at Caloocan, Mandaluyong, and Makati, respectively. Also, the demand at the Mandaluyong outlet has increased to 500 receivers. Find the most profitable distribution plan. 10. Standardize the following transportation tables and determined the optimal solution: (a) The cell entries are opportunity costs: (b) The entries corresponding to each route are profits per unit delivered along the route. 11. The kneehigh company manufactures quality slacks. Each of the three production plants can produce any of four kinds of slacks.Plant 1 can produce 40,000 slacks; Plant 2, 50,000; and Plant 3, 60,000. The company has orders for 25,000 slacks of style 1; 40,000 of style 2; 50,000 of style 3; and 35,000 of style 4. Though workers in each plant can produce a slack of any style, their efficiencies differ. The table below shows the per unit production costs in pesos. The selling prices of slacks of each style are also shown in the table. Find the most profitable production plan. How much is the net profit?