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2) Transportation Problem Simulation: Use the solver in Excel to find the number of units to ship from each factory to each customer that minimizes
2) Transportation Problem Simulation: Use the solver in Excel to find the number of units to ship from each factory to each customer that minimizes the total cost. Each factory has a fixed supply and each customer has a fixed demand. To formulate this transportation problem, answer the following three questions. a) What are the decisions to be made? Hint: Enter values in multiples of 100 b) What are the constraints on these decisions? c) What is the overall measure of performance for these decisions? d) Solve the model using solver
Unit Cost | Customer 1 | Customer 2 | Customer 3 | ||||
Factory 1 | 40 | 47 | 80 | ||||
Factory 2 | 72 | 36 | 58 | ||||
Factory 3 | 24 | 61 | 71 | ||||
Shipments | Customer 1 | Customer 2 | Customer 3 | Total Out | Supply | ||
Factory 1 | 0 | = | 100 | ||||
Factory 2 | 0 | = | 200 | ||||
Factory 3 | 0 | = | 300 | ||||
Total In | 0 | 0 | 0 | ||||
= | = | = | Total Cost | ||||
Demand | 200 | 200 | 200 | 0 |
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