Questions
1. Find the optimal March shipment schedule and its total transportation cost for each of the following:
a. cotton
b. polyester cloth
c. silk
2. The company will be opening a silk-making department in the Nigeria mill. Although it will not be completed for several months, a
current capacity of 1,000 bolts for that fabric might be used during March for an added onetime cost of $2,000. Find the new optimal
shipment schedule and the total cost for that fabric. Should the Nigeria mill process silk in
March?
3. Lao learns that changes might have to be made to the March plans. If a new customer is obtained,
the cotton demand in Manila and in Mexico City will increase by 10% at each location.
Meanwhile, a big New York customer might cut back,which would reduce polyester demand by 10% in both New York and Chicago. Find the
contingent optimal schedules and total costs (a) for cotton and (b) for polyester.
4. International Textile loses a profit of $10 for each bolt of cotton it falls short of meeting the distribution center’s demand. For polyester, the loss is bolt. By running the mills on overtime, the company can produce additional bolts at the additional costs shown in Table 5.17. Using only the original data from Tables 5.14 through 5.16 and the information in Table 5.17,determine new production schedules to maximize overall profit for successively (a) cotton, (b) polyester, and (c) silk. Which fabrics and locations involve overtime production, and what are the overtime quantities?
5. Without making any calculations, offer Lao other suggestions for reducing costs of transportation.
