Question 1
Table 1 shows the cost, in pounds, of transporting one unit of stock from each of four supply points, A, B, C and D, to each of four demand points, P, Q, R and S. It also shows the stock held at each supply point and the stock required at each demand point. A minimum cost solution is required.
| P | Q | R | S | Supply | |
| A | 15 | 14 | 17 | 11 | 23 |
| B | 10 | 9 | 16 | 12 | 42 |
| C | 11 | 13 | 8 | 10 | 18 |
| D | 15 | 13 | 16 | 17 | 19 |
| Demand | 25 | 45 | 12 | 20 |
Table 2 shows an initial solution given by the north-west corner method.
Taking DQ as the entering cell, use the stepping-stone method to find an improved solution. Make your method clear.
(2)
Perform one further iteration of the stepping-stone method to obtain an improved solution. You must make your method clear by stating the
entering cell and exiting cell.
(4)
Determine whether the solution obtained from this second iteration is optimal, giving a reason for your answer.
(3)
State the cost of the solution found in (b).
(1)