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BA 308B
Dr. Campbell
SAMPLE PROBLEMS
1. A large shipment of a single product can be sent from St. Louis to Los Angeles by train or by
water (down the Mississippi and through the Panama Canal). What characteristics of the product
would cause the ship to be preferred over rail?
2. An airline may lower their costs between two cities by replacing two daily flights in small planes
with one daily flight in a large plane, due to the principle of
a) postponement
b) differentiation
c) economies of scale d) standardization
3. Government control of the transportation industry is an example of
a) regulation
b) deregulation
c) consolidation
d) standardization
4. Consolidating small daily shipments into one weekly large shipment
a) increases transportation cost and increases inventory cost.
b) increases transportation cost and decreases inventory cost.
c) decreases transportation cost and increases inventory cost.
d) decreases transportation cost and decreases inventory cost.
5. A company sells 2000 products and has annual sales of $10 million. Only B and C items are
stored in the company warehouse. It is estimated that the 40 top selling items account for three
quarters of the total sales. The first 25% are A items, the next 30% are B items and the rest are C
items. The turnover ratio 4 to 1 for B items and 2 to 1 for C items. What is the average value of
inventory in the warehouse?
6. Find the shortest path from A to F using the method presented in class. Show all your work.
Clearly indicate the shortest path and its length.
B
4
A
2
16
C
11
E
5
F
3
6
7
D
7. A shipper in Chicago sends an average of 100,000 lbs of product to California each week. The
shipper is trying to decide whether to ship its product every week (as in the past), or in larger
quantities every four weeks. The transportation rates available are $1/cwt for less than 120,000 lbs.,
$0.80/cwt for 120,000 lbs. to 500,000 lbs. and $0.60/cwt for volumes over 500,000 lbs. The
company incurs a cost of $2.50/ton for each week delay in shipping. What should be the shipping
frequency (or how long should orders be held) to minimize total cost?
1
BA 308B
Dr. Campbell
8. Solve the following vehicle routing problem using the Clarke-Wright method. Three vehicles are
available at the warehouse (denoted 0) and each vehicle has a capacity of 20. Show all your work.
cij
0
1
2
3
4
0
-
1
4
-
2
3
2
-
3
5
7
7
-
4
2
3
3
3
-
5
3
1
8
5
4
Stop
1
2
3
4
5
Route(s): ____________________________________________
Total Length = _______
2
Demand
10
8
5
7
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BA 308B
Dr. Campbell
9. For the following transportation problem solution:
a) How much is sent from origin two to destination three?
b) How much is sent from origin three to destination four?
c) What is the supply at origin two?
d) What is the demand at destination two?
e) Is there any unsatisfied demand at any destination?
f) Is there any excess supply remaining at any origin? If so, how much and where?
TRANLP
Problem label: Enter label
OPTIMUM SUPPLY SCHEDULE
----------- Cell -----------Unit
Source name
Sink name
cost
F1
T1
3.00
F1
T2
3.00
F1
T3
4.00
F1
T4
2.00
Totals
Source capacity =
300
Slack capacity =
0
F2
F2
F2
F2
T1
T2
T3
T4
Totals
Source capacity =
Slack capacity =
F3
F3
F3
F3
Units
allocated
0
0
0
300
300
2.00
4.00
3.00
7.00
800.00
1,200.00
.00
1,400.00
3,400.00
400
300
0
200
900
2.00
5.00
1.00
5.00
.00
.00
700.00
500.00
1,200.00
0
0
700
100
800
900
0
T1
T2
T3
T4
Totals
Source capacity =
Slack capacity =
Cell
cost
.00
.00
.00
600.00
600.00
800
0
Total allocated =
Slack required =
Total cost = 5,200.00
3
2,000
2,000