Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Riviera Transport Company (RTC) produces car accessories at two plants: Dallas and Atlanta. They ship them to major distribution centers in Houston, San Jose,

The Riviera Transport Company (RTC) produces car accessories at two plants: Dallas and Atlanta. They ship them to major distribution centers in Houston, San Jose, Jacksonville, and Memphis. The accounting, production, and marketing departments have provided the information in the table below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. RTC's supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceed available capacity, and meet customer demand. Assume Xij = amount shipped from plant i to distribution center j, where i = 1 represents Dallas, i = 2 represents Atlanta, j = 1 represents Houston, and so on.

Transportation Model










Data





Distribution Center



Plant Houston San Jose Jacksonville Memphis Capacity
Dallas 13.00 15.25 10.99 18.48 1250
Atlanta 10.75 15.16 9.65 18.50 750
Demand 175 325 480 950

Answer the following question: using a linear optimization model. According to the Sensitivity report on the model, by what price should the unit cost of shipment reduce to make shipment from Dallas to Houston feasible?






Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this problem using a linear optimization model we can formulate it as a transportation prob... 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

Step: 3

blur-text-image

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

Project Management in Practice

Authors: Samuel J. Mantel Jr., Jack R. Meredith, Sco

4th edition

470533013, 978-0470533017

More Books

Students also viewed these General Management questions