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Renovation Products has stores in major centres in Alberta. They have decided to service these stores with warehouses associated with three of the stores:
Renovation Products has stores in major centres in Alberta. They have decided to service these stores with warehouses associated with three of the stores: Calgary, Red Deer and Edmonton which not only supply the local area but ship product to the other seven stores. This is the weekly situation that Renovation Product faces: # of Truckloads that can be shipped # of Truckloads Needed Calgary Red Deer Edmonton 15 10 15 Camrose 2 Medicine Hat 6 Lloydminster 5 Lethbridge 9 Ft. McMurray 7 Grande Prairie 5 Wetaskiwin 4 Renovation Products wants to send the truckloads at a minimal cost. The shipping rate is $3.78 per kilometre (with the fixed cost for the trucks the same no matter where the product is shipped). You will need to use the transportation template (available in D2L) to solve this problem. a State the optimal solution in words at the bottom of the optimized model. (What is the best transfer policy to minimize cost? What is the minimum cost?) b Which location(s), if any, will have excess capacity and how much?
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