Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A car manufacturer company manufactures Product Type 1 in three of its factories in Europe. Thefactories are located in the UK, Germany and Italy. The

A car manufacturer company manufactures Product Type 1 in three of its factories in Europe. Thefactories are located in the UK, Germany and Italy. The production capacity for each factory over thenext period is presented in Table 1: Table 1 Factory Location Next Period Production Capacity (units) UK 10,000 Germany 12,000 Italy 14,000 Total 36,000 The company distributes this product through four distribution centres located in France, Netherlands, Poland, and Romania. The next period demand forecast for each of these distribution centres is presented in Table 2: Table 2 Distribution Centre Location Next Period Demand Forecast (units) France 12,000 Netherlands 8,000 Poland 11,000 Romania 9,000 Total 40,000 The transportation cost () of moving each unit of product from origin to destination is presented in Table 3: Table 3 Origin France Netherlands Poland Romania UK 7 5 8 9 Germany 3 2 3 6 Italy 2 5 5 4 Given the available data for the company: A. Formulate a linear programming model that can be used to determine a plan for minimising thetotal distribution costs. Explain every step of the modelling process, including defining the variables, objective function, and the constraints. (20 marks) B. Formulate the linear model in Excel and link it with Excel Solver. Ensure all functions are correctly included.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Cases An Active Learning Approach

Authors: Mark S. Beasley, Frank A. Buckless, Steven M. Glover, Douglas F. Prawitt

2nd Edition

0130674842, 978-0130674845

Students also viewed these General Management questions