Homework 3
Homework 3
Operations Research
Deadline: 17 March 2016
A bank has two sites at which checks are processed. Site 1 can process 10,000 checks per day, and
site 2 can process 6,000 checks per day. The bank processes three types of checks: vendor, salary,
and personal. The processing cost per check depends on the site (see Table 1). Each day, 5,000
checks of each type must be processed.
Table 1: Costs based on check type and site.
Site 1
Site 2
Check Type
Vendor checks
$0.05
$0.03
Salary checks
$0.04
$0.04
Personal checks
$0.02
$0.05
a. Formulate a balanced transportation problem to minimize the daily cost of processing
checks.
b. Use Vogels method to find a bfs.