Question
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.
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