Answered step by step
Verified Expert Solution
Question
1 Approved Answer
SweetBalance is a manufacturer of pharmaceutical products located in Central Europe. After years of dedicated research and development, the company just unveiled a revolutionary new
SweetBalance is a manufacturer of pharmaceutical products located in Central Europe. After years of dedicated research and development, the company just unveiled a revolutionary new product (J30) that promises to transform the lives of those living with diabetes. This new product can be manufactured in two different factories, one in Poland and one in Switzerland. To distribute the product in Central Europe, the company will use its network of four regional distribution centers (RDCs). Sandra Carter, SweetBalance's Head of Supply Chain, needs to build an optimization model to minimize transportation costs in this network. To perform this task, she has collected the following information. Table 1: Distances from Factories to RDCs (in km) Factory 1 Factory 2 RDC 1 52 210 RDC 2 192 67 RDC 3 138 37 RDC 4 167 214 Table 2: Monthly production capacity (in units) Capacity Factory 1 1250 Factory 2 750 Table 3: Monthly demand allocated to each RDC (in units) Demand RDC 1 424 RDC 2 544 RDC 3 299 RDC 4 233 Finally, shipping from the two factories incurs different transportation costs, as the rates vary based on the country of origin. Table 4 displays the transportation cost (in euros per unit
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started