D2 June 2013 (R) Q3

EdexcelOld spec8 marksTransportation Problems

3. Table 1 below shows the cost, in pounds, of transporting one unit of stock from each of four supply points, A, B, C and D, to four demand points 1, 2, 3 and 4. It also shows the stock held at each supply point and the stock required at each demand point. A minimum cost solution is required.

1234Supply
A2236193735
B2935303615
C2432254120
D2330233830
Demand30203020

Table 1

Table 2 shows an initial solution given by the north-west corner method.

Table 3 shows some of the improvement indices for this solution.

1234
A305
B150
C20
D1020

Table 2

1234
Axx
Bxx
C82x1
D92xx

Table 3

(a) Explain why a zero has been placed in cell B3 in Table 2. (1)
(b) Calculate the shadow costs and the missing improvement indices and enter them into Table 3 in your answer book. (4)
(c) Taking the most negative improvement index to indicate the entering cell, state the stepping-stone route that should be used to obtain the next solution. You must state your entering cell and exiting cell. (3)