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Milford Lumber Company ships construction materials from three wood-processing plants to three retail stores. The shipping cost, monthly production capacities, and monthly demand for
Milford Lumber Company ships construction materials from three wood-processing plants to three retail stores. The shipping cost, monthly production capacities, and monthly demand for framing lumber are given below. Plant Store C Capacity Store A Store B 1 $5.50 $3.30 $1.20 320 2 $5.80 $2.40 $2.50 720 $2.90 790 $1.70 160 $4.60 540 510 3 Demand Formulate a linear optimization model for this problem, implement your model on a spredsheet, and use Excel Solver to find a solution that minimizes total distribution costs. If the constant is equal to one, enter "1". Let: X11 = number of components produced in Plant 1 and supplied to Store A X12 = number of components produced in Plant 1 and supplied to Store B X13 = number of components produced in Plant 1 and supplied to Store C X21 = number of components produced in Plant 2 and supplied to Store A X22 = number of components produced in Plant 2 and supplied to Store B X23 = number of components produced in Plant 2 and supplied to Store C X31 = number of components produced in Plant 3 and supplied to Store A X32 = number of components produced in Plant 3 and supplied to Store B X33 = number of components produced in Plant 3 and supplied to Store C Min X11+ Subject to the constraints X12+ X13+ X21+ X22+ X23+ X31+ X32+ X33 X11+ X12+ X13 X21+ X22+ X23 X11 X12 X13 X21 X22 X23 -Select- X31+ X32+ -Select- X33 -Select- + X31 X32 -Select- -Select- X33 -Select- X11, X12, X13, X21, X22, X23, X31, X32, X33 0 What is the value of total distribution costs at the optimal solution? Use the Excel solver to find the optimal solution. Round your answer to the nearest dollar. $
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