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日期:2024-10-30 07:01

MAN6927

Problem 1: Transportation network planning (8 marks)

GoodsWest is a manufacturing company headquartered in Western Australia. It has five plants which serve different states. Tables 1-3 show the necessary data on the fixed cost of operating plants and the variable manufacturing and transportation costs.

Table  1. Fixed  cost of operating  plants  and their annual  production capacity

Plant

Fixed cost (AUD)

Annual capacity (units)

P1

30,000

3,000

P2

20,000

3,000

P3

15,000

2,000

P4

25,000

2,500

P5

30,000

3,500

Table 2. Annual demand at each market (units)

Market

WA

NT

QLD

NSW

VIC

ACT

SA

TAS

Asia

Demand

3000

1000

1500

1300

1500

350

1500

850

2000

Table 3. Transportation cost of every unit (AUD)

WA

NT

QLD

NSW

VIC

ACT

SA

TAS

Asia

P1

10

10

20

35

14

30

20

25

10

P2

25

15

10

25

20

25

15

25

20

P3

35

10

25

20

25

20

25

25

20

P4

15

15

12

15

20

20

15

15

25

P5

20

15

20

25

15

30

30

20

15

Note 1: Every question is independent of the previous ones. It means that to answer each question, suppose that it is the only question.

Note 2. Explain your findings for each question in simple terms.

1.    How many products should be transported from each manufacturer to each market to minimise the total cost for GoodsWest?

2.    What is the total cost for GoodsWest in the optimal situation?

3.    From  Australian  markets,  WA, VIC,  and SA  want  to  be  single-sourced.  What  are  the  optimal transportation quantities and the total cost in this case?

4.    Due  to   the   recent  changes,  demand  in  TAS   has  increased to  1200  and  Asian  demand  has decreased to 1500. What is the optimal transportation planning in this case? Which plant should be closed to minimise the total cost?

5.    GoodsWest  is  considering  feeding the Asian  market just  from  P4  and  P5.  What  are  the  cost implications of this decision?


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