Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An international manufacturer ships products from three different locations (1, 2, 3) overseas to three US markets (7, 8, and 9). Because of high
An international manufacturer ships products from three different locations (1, 2, 3) overseas to three US markets (7, 8, and 9). Because of high tariffs between some countries, it is sometimes cheaper to ship partially assembled products to some intermediate countries (4, 5, and 6) where the products are completed and shipped to the US. The cost of the completed units in addition to the tariffs and direct shipping cost from the origins (1, 2, 3) to the US destinations (7, 8, and 9) is given in the table blow. The supply available from the origins and the demand required to be met at the final US markets are also given below: 7 8 1 2600 1900 2 2200 2100 3 1800 2200 Demand 2.1 3.7 9 Supply 2300 5.2 2600 6.3 2500 4.5 7.8 The cost per unit of shipping the partially completed products from the sources to the intermediate countries before sending them to the US markets is given in the table below: 4 5 1 1400 1200 2 1600 1100 3 1500 1400 6 1100 900 1200 Finally, the cost per unit of the completed products from the intermediate countries to the final US markets is given in the table below: 4 7 800 8 700 5 600 800 6 900 700 9 900 1100 1200 Formulate a linear model to find the optimal number of units to ship and which links (routes) to use for shipping to minimize the total cost Implement your model using Excel and find the optimal solution using solver. Include in your report a snapshot of the optimal solution (i.e., the objective function value, how much to ship from each source and via which routes)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started