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Suppose that country A, country B and country C produce all the apples, bananas and oranges in the world. The world’s demand for apples requires 90 million acres of land devoted to apple production, 90 million acres of land for bananas and 100 million acres for oranges. The total amount of land available in country A is 90 million acres, in country B is 110 million acres, and in country C is 80 million acres. The required labor hours in country A to produce an acre of apples, bananas and oranges are 18, 20, 16, respectively. Similarly, the required labor hours are 5, 13, and 12 in country B. Moreover, the required labor hours are 23, 22, and 25 for apples, bananas and oranges in country C. Given that the labor cost in country A to produce apples, bananas and oranges per hour is $8, $9 and $10, and for country B is the same as country A. In country C, the labor cost for apples, bananas and oranges is $10, $10 and $11. The problem is to allocate land use in each country so as to meet the world requirement and minimize the total labor costs.

Construct the appropriate parameter table for this problem as a transportation problem. Draw the network representation of this problem as a transportation problem.

Operation Management, Management Studies

  • Category:- Operation Management
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