Question
Allied Freight supplies goods to three customers. The company has two warehouses. The warehouse availabilities, the customer requirements, and the unit shipping costs from warehouses
Allied Freight supplies goods to three customers. The company has two warehouses. The warehouse availabilities, the customer requirements, and the unit shipping costs from warehouses to customers are shown in the file P05_67.xlsx. There is a penalty for each unsatisfied customer unit of demand, and these penalties are also listed in the same file.
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Determine how to minimize the sum of penalty and shipping costs.
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Use SolverTable to see how a change in the unit penalty cost of customer 1 affects the optimal cost.
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Use SolverTable to see how a change in the capacity of warehouse 1 affects the optimal cost.
Allied Freight data Unit shipping costs To Customer 1 Customer 2 Customer 3 Available units From Warehouse 1 $35 $15 $25 Warehouse 1 400 Warehouse 2 $30 $10 $40 Warehouse 2 200 Requirements Customer 1 Customer 2 Customer 3 150 250 300 Penalty cost per unit of requirement not satisfied Customer 1 Customer 2 Customer 3 $125 $100 $90
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