Which Allocation Maximizes Factory Profits?

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SUMMARY

The discussion focuses on maximizing factory profits through optimal allocation of materials from factories A, B, and C to dealers L, M, N, and P. The profits per unit sold are detailed in a table, with factory outputs and dealer demands specified. To achieve maximum profits, participants recommend using transportation algorithms such as the North West Corner Rule or the Minimum Cost Method, emphasizing the need to adjust the profit table by subtracting each element from the largest value. This approach aligns with solving a transportation problem in mathematical programming.

PREREQUISITES
  • Understanding of transportation problems in operations research
  • Familiarity with the North West Corner Rule
  • Knowledge of the Minimum Cost Method
  • Basic mathematical programming concepts
NEXT STEPS
  • Study the North West Corner Rule in detail
  • Explore the Minimum Cost Method for transportation problems
  • Read about adjusting profit tables for optimization
  • Investigate other transportation algorithms and their applications
USEFUL FOR

Operations researchers, supply chain analysts, and anyone involved in optimizing resource allocation and maximizing profits in manufacturing and distribution contexts.

ra_forever8
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The table below records the profits that are made when one unit of material is sold by factories A,B, C to dealers L,M,N, P. The output of each factory and demand from each dealer are given in brackets
( A,B,C ) -> L(30) M(30) N(30) P(45)
A(100) -> 25 30 20 20
B(20) -> 30 25 15 10
C(15) -> 10 35 5 30

Find the allocation which maximises the profits for the factories.
(Hint: this is similar to a transportation problem . You need to decide which inequalities should be reversed.)
 
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Re: Mathematical Programming

grandy said:
The table below records the profits that are made when one unit of material is sold by factories A,B, C to dealers L,M,N, P. The output of each factory and demand from each dealer are given in brackets
( A,B,C ) -> L(30) M(30) N(30) P(45)
A(100) -> 25 30 20 20
B(20) -> 30 25 15 10
C(15) -> 10 35 5 30

Find the allocation which maximises the profits for the factories.
(Hint: this is similar to a transportation problem . You need to decide which inequalities should be reversed.)

Hi grandy, :)

You have to subtract each element in the table from the largest element of the table and apply a transportation algorithm such as the North West Corner Rule or the Minimum Cost Method. The following article will give you a good description about each of the transportation algorithms.

http://homes.ieu.edu.tr/~ykazancoglu/BA228/Transportation.pdf

You can check your solution >>here<<.

Kind Regards,
Sudharaka.
 

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