Page 342 -

322 CHAPTER 7 TRANSPORTATION, ASSIGNMENT AND TRANSSHIPMENT PROBLEMS

Table 7.33 Production, Demand and Cost Estimates for Contois Carpets
Production Demand Production Inventory
Capacity (square Cost (E/ Cost (E/
Quarter (square metres) metres) square metre) square metre)
1 600 400 2 0.25
2 300 500 5 0.25
3 500 400 3 0.25
4 400 400 3 0.25

Figure 7.12 Network Representation of the Contois Carpets Problem

Production Demand
Nodes Nodes

1 5
600 Quarter 1 2 Quarter 1 400
Production Demand

0.25

2 6
300 Quarter 2 5 Quarter 2 500
Production Demand

0.25

3 7
500 Quarter 3 3 Quarter 3 400
Production Demand

0.25

4 8
400 Quarter 4 3 Quarter 4 400
Production Demand

Production Production Demands
Capacities (arcs)

The objective is to determine a production scheduling and inventory policy that
will minimize the total production and inventory cost for the four quarters. Con-
straints involve production capacity and demand in each quarter. As usual, a linear

Copyright 2014 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s). Editorial review has
deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.