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ABC Ltd buys 15 used trucks at each of two truck auctions each week held at different locations. It then transports the trucks to repair

ABC Ltd buys 15 used trucks at each of two truck auctions each week held at different locations. It then transports the trucks to repair shops it contracts with. When they are restored to ABC's specifications, ABC sells 10 each to three different used truck lots. There are various costs associated with the average purchase and transportation prices from each auction to each repair shop. Also there are transportation costs from the repair shops to the used truck lots. ABC is concerned with minimizing its total cost given the costs in the table below.

 

a. Given the costs below, draw a network representation for this problem (show all the data).

 

Repair Shops

Used Truck Lots

 

 

 

S1

S2

 

L1

L2

L3

Auction 1

550

500

            S1

250

300

500

Auction 2

600

450

            S2

350

650

450

 

 

 

 

b. Formulate this problem as a linear programming model.

    Define the decision variables

    Formulate the objective function

    Formulate the constraints

 

c. Use Excel's Solver to find the optimal solution to this problem.

    Report the total cost

    Interpret the optimal solution: how many trucks (if any) should be sent from each Auction to each Repair Shop and from Each Repair Shop to each Used Truck Lot?

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