D2 June 2016 Q5

EdexcelOld spec12 marksTransportation Problems

5. The table below shows the cost of transporting one unit of stock from each of four supply points, 1, 2, 3 and 4, to each of three demand points, A, B and C. It also shows the stock held at each supply point and the stock required at each demand point. A minimal cost solution is required.

ABCSupply
118232015
222172536
324211928
421221720
Demand402025
(a) Explain why it is necessary to add a dummy demand point. (1)
(b) Add a dummy demand point and appropriate values to Table 1 in the answer book. (1)
(c) Use the north-west corner method to obtain a possible solution. (1)

After one iteration of the stepping-stone method the table becomes

ABCD
115
21917
3325
4614
(d) Taking D3 as the entering cell, use the stepping-stone method twice to obtain an improved solution. You must make your method clear by stating your shadow costs, improvement indices, routes, entering cells and exiting cells. (6)
(e) Determine whether your solution from (d) is optimal. Justify your answer. (3)