Plant Demand

Capacity

Price
1 400 500 100
2 300 600 140
3 420 200 120
4 380 300 150

The demand for a perishable item over the next four months is 400, 300, 420, and 380 tons, respectively. The supply capacities for the same months are 500, 600, 200, and 300 tons. The purchase price per ton varies from month to month and is estimated at $100, $140, $120, and $150, respectively. Because the item is perishable, a current month’s supply must be consumed within 3 months (starting with current month). The storage cost per ton per month is $3. The nature of the item does not allow back-ordering. Solve the problem as a transportation model, and determine the optimum delivery schedule for the item over the next 4 months.
(a) Formulate the problem as a transportation model.
(b) Find the initial basic feasible solution to the above transportation problem by using North West Corner Rule, Least Cost Rule and Vogel’s Approximation Method.

After the 2008 recession, the amount of reserves in the us banking system increased. because of federal reserve actions, required reserves increased from $44 billion to $60 billion. however, banks started holding more reserves than required. by january 2009, banks were holding $900 billion in excess reserves. the federal reserve started paying interest on the excess reserves that the banks held. what possible impact will these unused reserves have on the economy?

Jewelry manufacturers produce a range of products such as rings, necklaces, bracelets, and brooches. what fundamental economic question are they addressing by offering this range of items?

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?