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Freight Transportation: You are in charge of planning the design of the transportation supply chain of products from the production plants to the selling points.
Freight Transportation: You are in charge of planning the design of the transportation supply chain of products from the production plants to the selling points. You need to decide which of the three production plants to open and how much to transport from the plants to the selling points in the city of Athens. Table 1 shows the opening cost for each plant per product. The cost is different if you want to operate the plant for either product or both. Table 2 shows the maximum production of each plant if open. The transportation cost per Kg is shown in Table 3. Finally, the demand at the selling points is presented in Table 4. a. First, draw the transportation problem in a network design form. This will help you understand the problem and identify its components b. Then define the decision variables of the problem c. Formulate the mathematical optimization problem d. Solve your problem in c) using any software you want (MS Excel Solver, AMPL, GAMS, IBM ILOG CPLEX, etc). Table 1: Opening cost per plant and product Chocolate Marzipan Mighty Bobcat $5,000 $10,000 Undefeated Buckeye $3,500 $ 10,500 Brave Wolverine $4,000 $10,300 Mighty Bobcat Undefeated Buckeye Brave Wolverine Table 2: Max production Chocolate 4,000 Kgs 3,500 Kgs 3,000 Kgs Marzipan 1,000 Kgs 1,500 Kgs 1,300 Kgs Table 3: Transportation costs North Mighty Bobcat $0.5/Kg Undefeated Buckeye $0.8 /kg Brave Wolverine $0.6/Kg West $0.3 /Kg $0.7 /Kg $1.0/kg Table 4: Demand at selling points Chocolate 1,800 Kgs 2,100 Kgs North West Marzipan 800 Kgs 1,200 Kgs Freight Transportation: You are in charge of planning the design of the transportation supply chain of products from the production plants to the selling points. You need to decide which of the three production plants to open and how much to transport from the plants to the selling points in the city of Athens. Table 1 shows the opening cost for each plant per product. The cost is different if you want to operate the plant for either product or both. Table 2 shows the maximum production of each plant if open. The transportation cost per Kg is shown in Table 3. Finally, the demand at the selling points is presented in Table 4. a. First, draw the transportation problem in a network design form. This will help you understand the problem and identify its components b. Then define the decision variables of the problem c. Formulate the mathematical optimization problem d. Solve your problem in c) using any software you want (MS Excel Solver, AMPL, GAMS, IBM ILOG CPLEX, etc). Table 1: Opening cost per plant and product Chocolate Marzipan Mighty Bobcat $5,000 $10,000 Undefeated Buckeye $3,500 $ 10,500 Brave Wolverine $4,000 $10,300 Mighty Bobcat Undefeated Buckeye Brave Wolverine Table 2: Max production Chocolate 4,000 Kgs 3,500 Kgs 3,000 Kgs Marzipan 1,000 Kgs 1,500 Kgs 1,300 Kgs Table 3: Transportation costs North Mighty Bobcat $0.5/Kg Undefeated Buckeye $0.8 /kg Brave Wolverine $0.6/Kg West $0.3 /Kg $0.7 /Kg $1.0/kg Table 4: Demand at selling points Chocolate 1,800 Kgs 2,100 Kgs North West Marzipan 800 Kgs 1,200 Kgs
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