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A car manufacturer has production plants in Germany, the United Kingdom, and France and exports to some other countries. The manufacturer s supply chain includes
A car manufacturer has production plants in Germany, the United Kingdom, and France
and exports to some other countries. The manufacturers supply chain includes the
manufacturer, distributors and retailers. The plant in Germany wants to export cars,
the UK plant, cars, and the France plant, cars. Cars are not shipped directly
from plants to retailers; they are first shipped to distributors in Egypt and the UAE, who in
turn export cars to retailers countries. Distributors do not stock cars; they export
whatever they receive from manufacturers. The demand for cars from India is at least
cars, South Africa, cars; and Singapore, cars. Since the customs rules
and currency rates are different in these countries, the transportation costs in dollars to
ship a car from production plants to distributors are:
Country Egypt UAE
Germany
UK
France
The costs of transshipping a car in dollars from Egypt and the UAE to the three other
countries are shown in the following table:
Country India South Africa Singapore
Egypt
UAE
The manufacturer wants to determine the export mix of cars that will minimize
transportation costs.
a Formulate a linear programming model for this problem.
b Solve using Excel Solver.
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