QUESTION TWO a) Three major sisal estates in the coast region produce the following amounts of sisal: These sisal estate supply sisal to three sisal manufacturing plants that have the following demand: Transportation costs in Kenya shillings per ton of sisal are as follows: Required Set up a transportation tableau for this problem and determine the initial solution using VAM. Solve this problem using MODI.
b) Otonglo Company limited has just leased a new store at a new mall in Thika Road and is attempting to determine where various departments should be located within the store. The manager has four locations that have not yet been assigned a department and is considering five departments that might occupy the locations. The departments under consideration are: LEATHER PRODUCTS, FURNITURE, LADIES WEAR, CHILDREN SECTION and GIFTS. After a careful study of the layout of the store, the manager has made estimates of the expected annual profit (in sh. millions) for each department in each location. Required Determine the assignment that will maximize annual profit.
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