Inputs - Costs, Capacities, Demands: Demand Region Production and Transportation Cost Per Unit

Question 1
Inputs - Costs, Capacities, Demands
Supply Region
Johannesburg
Bloemfontein
Durban
Cape Town
Gauteng
Demand
Demand Region
Production and Transportation Cost per Unit
Free state KZN
Western Cape
2,080
2,290
2,370
2,970
2,290
2,090
2,270
2,770
2,350
2,270
2,120
2,670
2,960
2,770
2,670
2,220
1600
900
800
Fixed
Low
Cost (R) Capacity
5,550,000
2000
5,500,000
2000
5,500,000
2000
5,500,000
2000
1000
Decision Variables
Supply Region
Johannesburg
Bloemfontein
Durban
Cape Town
Constraints
Supply Region
Johannesburg
Bloemfontein
Durban
Cape Town
Gauteng
Demand Region - Production Allocation (Units)

Low Cap Plants
Free state KZN
Western Cape
(1=open)
1600
900
800
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1000
1
Excess Capacity
700
0
0
1000
Gauteng
Unmet Demand
Free state
0
Objective Function
Cost =
R 24,255,000
KZN
0
Western Cape
0
High Cap
Plants
(1=open)
1
0
0
0
Fixed
High
Cost (R) Capacity
9,250,000
4000
9,200,000
4000
9,200,000
4000
9,200,000
4000
Question 2a
Input Data
Variable Production and Shipping Cost (R / unit)

Great Britain Spain
Supply
Locations
Berlin
Frankfurt
Italy
Spain
Demand (units /
year)
1600
1700
1600
2000
45,000
1650
1600
1650
1550
45,000
1580
1800
1500
1750
27,000
1800
2000
1950
1700
81,000
Sale price =
R 4,500.00 R 4,500.00
###
###
###
1550
1500
1600
2000
99,000
Italy
Annual Fixed Cost (R)
Germany
Tax Rate
France
Capacity (units
per year)
R 110,000,000
R 180,000,000
R 150,000,000
R 150,000,000
80,000
130,000
130,000
130,000
36%
36%
25%
29%
Decision Variables and Constraints
Germany
Berlin
Frankfurt
Italy
Spain
Demand
constraint
0
99000
0
0
0
Quantity Shipped
Great Britain Spain
Italy
45000
0
0
0
0
0
0
0
45000
0
27000
0
0
0
0
France
0
0
0
81000
0
Open (1) / Shut (0)
Capacity
Constraint
1
1
0
1
1
Cost
Revenue
Profit
After tax profit
8000.00
R 224,660,000
R 324,000,000
R 99,340,000
31000.00
R 328,500,000
R 445,500,000
R 117,000,000
0.00
R0
R0
R0
R0
4000.00
R 357,450,000
R 567,000,000
R 209,550,000
R 148,780,500
Total Cost =
R 910,610,000
R 1,336,500,000 Total Profit =
R 63,577,600
R 74,880,000
R 287,238,100
Question 2a
Input Data
Germany
Great Britain Spain
Italy
France
Supply
Locations
Berlin
1550
1600
1650
1580
1800
Frankfurt
1500
1700
1600
1800
2000
Italy
1600
1600
1650
1500
1950
Spain
2000
2000
1550
1750
1700
Demand (units /
99,000
45,000
45,000
27,000
81,000
year)
Sale price =
R 4,500.00 R 4,500.00
###
###
Tax Rate
Capacity (units
per year)
R 110,000,000
R 180,000,000
R 150,000,000
R 150,000,000
80,000
130,000
130,000
130,000
36%
36%
25%
29%
###
Germany
Berlin
Frankfurt
Italy
Spain
Demand
constraint
0
87000
12000
0
0
Quantity Shipped
Great Britain Spain
Italy
0
0
45000
0
0
0
0
45000
0
0
0
0
27000
0
0
France
80000
0
1000
0
0
Open (1) / Shut (0)
Capacity
Constraint
1
1
1
0
1
Cost
Revenue
Profit
After tax profit
0.00
R 254,000,000
R 360,000,000
43000.00
R 310,500,000
R 391,500,000
R 81,000,000
R 51,840,000
0.00
R 357,900,000
R 585,000,000
R 227,100,000
R 170,325,000
0.00
R0
R0
R0
Total Cost =
R 922,400,000
R 106,000,000
Total Profit =
R 67,840,000
R0
R 290,005,000
Question 2a
Input Data

Supply
Locations
Berlin
Frankfurt
Italy
Spain
Demand (units /
year)
Sale price =
Germany
Great Britain Spain
Italy
Tax Rate
France
1550
1500
1600
2000
99,000
1600
1700
1600
2000
45,000
1650
1600
1650
1550
45,000
1580
1800
1500
1750
27,000
1800
2000
1950
1700
81,000
R 4,700.00
4100
3100
3900
4,500
Capacity (units
per year)
R 110,000,000
R 120,000,000
R 150,000,000
R 150,000,000
80,000
130,000
130,000
130,000
36%
36%
25%
29%
Germany
Berlin
Frankfurt
Italy
Spain
Demand
constraint
0
99000
0
0
0
Quantity Shipped
Great Britain Spain
Italy
0
0
45000
0
0
0
8000
0
0
37,000
0
0
27000
0
0
France
0
23000
58000
0
0
Capacity
Constraint
Open (1) / Shut (0)

0
1
1
0
1
Cost
Profit
After tax profit
R0
R0
R0
R0
0.00
R 327,300,000
R 593,600,000
R 266,300,000
R 170,432,000
0.00
R 375,600,000
R 550,800,000
R 175,200,000
R 131,400,000
R0
R0
0.00
Total Cost =
Revenue
0.00
R0
R 702,900,000
R 1,144,400,000 Total Profit =
R0
R 301,832,000
total
Q1
Q2a
Q2b
Q3

Inputs - Costs, Capacities, Demands: Demand Region Production and Transportation Cost Per Unit

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Inputs - Costs, Capacities, Demands: Demand Region Production and Transportation Cost Per Unit

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Question 1

Inputs - Costs, Capacities, Demands

Demand Region - Production Allocation (Units)

Variable Production and Shipping Cost (R / unit)

Annual Fixed Cost (R)

Decision Variables and Constraints

Open (1) / Shut (0)

After tax profit

R 1,336,500,000 Total Profit =

Variable Production and Shipping Cost (R / unit)

Annual Fixed Cost (R)

Decision Variables and Constraints

Open (1) / Shut (0)

After tax profit

Variable Production and Shipping Cost (R / unit)

Great Britain Spain

Annual Fixed Cost (R)

Decision Variables and Constraints

Open (1) / Shut (0)

After tax profit

R 1,144,400,000 Total Profit =

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