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Prescriptive Analytics Problem: A clothing manufacturer produces shirts, pants, and jackets in three different factories located in New York, Los Angeles, and Chicago. Each factory
Prescriptive Analytics Problem: A clothing manufacturer produces shirts, pants, and jackets in three different factories located in New York, Los Angeles, and Chicago. Each factory has a production capacity which is given in the capacity table. The demand for shirts, pants, and jackets in three different cities: Miami, Seattle, and Boston, is 300, 500, and 400 units, respectively (35 points). Production Capacity: Factory Production Capacity New York 200 Los Angeles 600 Chicago 400 Demand: City Demand Miami 300 Seattle 500 Boston 400 Transportation Costs: Warehouse / City Miami Seattle Boston New York $11 $7 $13 Los Angeles $6 $10 $12 Chicago $15 $4 $9 Assume there is a loss of 5% in each transfer. In other words, 95% of the clothes reach from source to destination. The ultimate objective is to ship clothes from factories and try to fulfill the demand at the minimum cost. Design a mathematical model for this transportation problem, including all the necessary decision variables, constraints, and the objective function. Solve the problem using Excel and present your thought process, the optimal solution along with the minimum cost. Do not use LINGO. You must submit your Excel file, too
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