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Please answer the question e), f), and g). Thank you Company X produces office desks at two plants. Plant P1 has an annual capacity of
Please answer the question e), f), and g). Thank you
Company X produces office desks at two plants. Plant P1 has an annual capacity of 200,000 desks; plant P2 has an annual capacity of only 60,000 desks. There are three different market areas for desks. Each market requires at least the following shipments: market 1: 50,000 desks per year, market 2: 100,000 desks per year, and market 3: 50,000 desks per year. Desks can be shipped from the plants to the markets via two warehouses. The distribution cost per desk between plants and warehouses, and between warehouses and markets are shown in Table 1. (Note:in the Table means that this distribution route is not relevant or not possible at the moment.) Table 1: Distribution cost (E per desk) between plants and warehouses (W/H) and between warehouses and markets W/H 1 W/H 2 Market 1 Market 2 Market 3 From: P1 P2 W/H 1 W/H 2 2 4 The company's problem is to find out how many desks to produce at each plant, and how to ship the desks to the markets such that the total distribution cost is minimised. A linear programming model was formulated-the Excel layout (with optimal solution) and the Solver sensitivity report are shown in Figure 1 and Figure 2 From: Plant 1 Plant 2 Warehouse 1 Warehouse 1 Warehouse 2 Market 1 Marke ket 3 Total flow 140000 60000 140000 140000 60000 50000 90000 1000 10000 Total flow in 140000 50000 Unit cost: Warehouse 1 Warehouse 2 Market 1 Market 2 Market 3 Plant 1 Plant 2 Warehouse 1 Warehouse 2 Constraints Capacity Plant 1 140000 Demand Market 1 Demand Market 2 Demand Market3 Flow balance W/H 1 Flow balance W/H 2 50000 100000 100000 Total cost 40000
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