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A paper manufacturer having two mills must supply weekly three printing plants with printingpaper. Mill 1 produces 350 tons of printing paper a week and Mill 2 produces 550 tons perweek. Plant 1 requires 300 tons of paper per week, Plant 2 requires 400 tons and Plant 3requires 200 tons. The shipping costs, in £ per ton, are given in the following table below.Plants1 2 3Mill 1 : 17 22 15Mill 2 : 18 16 12a) Find a feasible solution (shipping schedule) using the Northwest Corner approach and itscost.[4 Marks]b) Formulate the problem as an LP.[5 Marks]c) Consider the following analysis:It costs £1/ton less to supply Plant 1 from Mill 1 instead of Mill 2. However, supplying Plant 2from Mill 2 saves £6/ton, and supplying Plant 3 from Mill 2 saves £3/ton. The greatestrelative savings comes from supplying Plant 2 as much as possible from Mill 2.Following this argument, find the optimum shipping schedule and its cost.

Question

A paper manufacturer having two mills must supply weekly three printing plants with printingpaper. Mill 1 produces 350 tons of printing paper a week and Mill 2 produces 550 tons perweek. Plant 1 requires 300 tons of paper per week, Plant 2 requires 400 tons and Plant 3requires 200 tons. The shipping costs, in £ per ton, are given in the following table below.Plants1 2 3Mill 1 : 17 22 15Mill 2 : 18 16 12a) Find a feasible solution (shipping schedule) using the Northwest Corner approach and itscost.[4 Marks]b) Formulate the problem as an LP.[5 Marks]c) Consider the following analysis:It costs £1/ton less to supply Plant 1 from Mill 1 instead of Mill 2. However, supplying Plant 2from Mill 2 saves £6/ton, and supplying Plant 3 from Mill 2 saves £3/ton. The greatestrelative savings comes from supplying Plant 2 as much as possible from Mill 2.Following this argument, find the optimum shipping schedule and its cost.

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Solution

a) Using the Northwest Corner approach, we start from the top left cell of the table and allocate as much as possible to each cell moving from left to right, top to bottom.

  • Mill 1 to Plant 1: 300 tons (the remaining capacity of Mill 1 is 50 tons)
  • Mill 1 to Plant 2: 50 tons (Mill 1 is now fully allocated)
  • Mill 2 to Plant 2: 350 tons (the remaining capacity of Mill 2 is 200 tons)
  • Mill 2 to Plant 3: 200 tons (Mill 2 is now fully allocated)

The cost of this shipping schedule is: (30017) + (5022) + (35016) + (20012) = £11,700.

b) The problem can be formulated as a Linear Programming (LP) problem as follows:

Minimize: 17x11 + 22x12 + 15x13 + 18x21 + 16x22 + 12x23 Subject to: x11 + x12 + x13 = 350 (Mill 1 capacity) x21 + x22 + x23 = 550 (Mill 2 capacity) x11 + x21 = 300 (Plant 1 demand) x12 + x22 = 400 (Plant 2 demand) x13 + x23 = 200 (Plant 3 demand) xij >= 0 for all i,j

c) Following the analysis, we can adjust the shipping schedule to save costs:

  • Mill 1 to Plant 1: 300 tons
  • Mill 2 to Plant 2: 400 tons
  • Mill 2 to Plant 3: 150 tons
  • Mill 1 to Plant 3: 50 tons

The cost of this shipping schedule is: (30017) + (40016) + (15012) + (5015) = £11,550. This is the optimum shipping schedule.

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