Question
Laguna Manufacturing has three plants producing a certain product that is to be shipped to three distribution centers. The following departments have provided you the
Laguna Manufacturing has three plants producing a certain product that is to be shipped to three distribution centers. The following departments have provided you the following helpful information.
Logistics: The freight cost for each shipment (in dollars) is contained in the following table:
Distribution Center
Plant 1 2 3 Supply
A 3 13 4 150
B 11 14 6 400
C 6 12 8 200
Demand 300 250 200
Production: The cost of production at plant A is $5/unit, plant B is $4/unit and at plant C is $6/unit.
Public Safety: The route between Plant A and Distribution Center 3 is unavailable for the foreseeable future and the route between Plant B and Distribution Center 2 is limited to 30 containers.
Management: Laguna would like to minimize shipping costs and would like your recommendations. Develop a network model (including any dummy values required) describing this situation, formulate and solve the problem Using Excel. What are the shipping routes and total costs?
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