1. A wholesale company has nine storage depots which itproposes to rationalize. Four depots, Q, R, S, and T are to beexpanded and five depots, A, B, C, D, and E are to be closed.Thirty six of the mechanical loaders in the depots to be closedwill be required for use in the enlarge depots.
The mechanical loaders in the five depots to be closed are: ?:5, ?: 7, ?: 11, ?: 8, and ?: 9 The additional loaders required atthe depots to be expanded are: ?: 8, ?: 9, ?: 11, and ?:8.
The cost of transporting one mechanical loader, in hundreds ofcedis, between depots is given below.
Depots to be Depots to be expanded closed
QRST A3379 B6533 C6487 D5454 E4365
a) Show by calculation the minimum cost plan for meeting therationalization requirement by transfers between depots.
b) State at which depot there will be surplus loaders.
c) State with reasons whether or not your solution isunique.
2. Consider the LP problem below: Minimize: ? = ?2? + 8?Subject to:
3? + 4? ? 80 ?3? + 4? ? 8 ? + 4? ? 40
a) Solve the above problem using the simplex method ofsolution.
b) Comment on the nature of solution to the above problem andhence, interpret your results
