Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 5 (30 PTS): AutoSupply Corporation is a global distributor of automobile parts and components. Its customers are auto makers in the United States. The

image text in transcribedimage text in transcribedimage text in transcribed
Problem 5 (30 PTS): AutoSupply Corporation is a global distributor of automobile parts and components. Its customers are auto makers in the United States. The company sources components and parts from manufacturers in Europe. Components and parts are first delivered to warehouses in three European ports: Genua, Hamburg, and Valencia, where the components and parts are loaded into containers based on demand from U.S. customers. Each port has a limited number of containers available each month (Please see Table 1). The containers are then shipped to overseas by container ships to the ports of Baltimore, Tampa bay, New Orleans, and Houston. Table 1: Shipping costs ($/container) From European Ports to U.S. Seaports European Port Available U.S. Seaport Containers 4. Baltimore 5. Tampa bay 6. New Orleans 7. Houston 1. Genua 125 $1,725 $1,800 $2,345 $2,700 2. Hamburg 210 $1,825 $1,750 $1,945 $2,320 3. Valencia 160 $2,060 $2, 175 $2,050 $2,475 From these U.S. seaports, the containers are coupled with trucks and hauled to inland ports in Oklahoma City, St. Louis, and Richmond. There are a fixed number of freight haulers available at each U.S. seaport each month (The available container capacities are shown in Table 2). Table 2: Shipping costs ($/container) From U.S. Seaports to Inland Ports U.S. Seaport Available Capacity Inland Port (Containers 8. Oklahoma City 9. St. Louis 10. Richmond 4. Baltimore 85 $825 $545 $320 5. Tampa bay 1 10 $750 $675 $450 6. New Orleans 100 $325 $605 $690 7. Houston 130 $270 $510 $1,050 From the inland ports, the containers are transported to AutoSupply's distribution centers in Tucson, Denver, Pittsburgh, Atlanta, and Detroit. The available container capacity at each inland port, the shipping costs ($/container) between each inland port and distribution center, and the demand at each distribution center are shown in Table 3:Table 3: Shipping costs ($/container) From Inland Ports to DC's Available Inland Port Capacity Distribution Center (Containers) 11. Tucson 12. Denver 13. Pittsburgh 14. Atlanta 15. Detroit 8. Oklahoma City 170 $450 $830 $565 $420 $960 9. St. Louis 240 $880 $520 $450 $380 $660 10. Richmond 140 $1,350 $390 $1,200 $450 $310 Demand at Distribution Centers 85 60 105 50 120 Questions:Draw a network ow representation of this problem. Formulate a Linear Programming model to determine the optimal shipments from each point of embarkation to each destination along this supply chain that will result in the minimum total shipping cost. Create a spreadsheet model for this problem and solve it using Solver

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

An Introduction to the Mathematics of financial Derivatives

Authors: Salih N. Neftci

2nd Edition

978-0125153928, 9780080478647, 125153929, 978-0123846822

More Books

Students also viewed these Mathematics questions