Use the following narrative for Question $25$

PoyrazTech is a global distributor of electrical parts and components. Its customers are electronics

companies in the United States, including computer manufacturers and audio$/$ visual product

manufacturers.

The company contracts to purchase components and parts from manufacturers in $$stanbul$,$ T$$rkiye and it

has them delivered to warehouses in three European ports, Gdansk, Hamburg, and Lisbon. The various

components and parts are loaded into containers based on demand from U$.$S$.$ customers. Each port has a

limited fixed number of containers available each month. The containers are then shipped overseas by

container ships to the ports of Norfolk, Jacksonville, New Orleans, and Galveston. From these seaports,

the containers are typically coupled with trucks and hauled to inland ports in Front Royal $($Virginia$),$

Kansas City, and Dallas. There are a fixed number of freight haulers available at each port each month.

These inland ports are sometimes called $$freight villages,$$ or intermodal junctions, where the containers

are collected and transferred from one transport mode to another $($i$.$e$.,$ from truck to rail or vice versa$).$

From the inland ports, the containers are transported to PoyrazTech$$s distribution centers in Fargo, Fort

Wayne, Denver, Tucson, and Cleveland.

Following are the handling and shipping costs $($$$/$container$)$ between each of the embarkation and

destination points along this overseas supply chain.

European

Port

U$.$S$.$ Port

$4.$ Norfolk $5.$ Jacksonville $6.$ New Orleans $7.$ Galveston

$1.$ Gdansk $$1,725$ $$1,800$ $$2,345$ $$2,700$

$2.$ Hamburg $$1,825$ $$1,750$ $$1,945$ $$2,320$

$3.$ Lisbon $$2,060$ $$2,175$ $$2,050$ $$2,475$

U$.$S$.$ Port

Inland Port

$8.$ Dallas $9.$ Kansas City $10.$ Front Royal

$4.$ Norfolk $$825$ $$545$ $$320$

$5.$ Jacksonville $$750$ $$325$ $$270$

$6.$ New Orleans $$675$ $$605$ $$510$

$7.$ Galveston $$450$ $$690$ $$1,050$

Inland Port

Distribution Center

$11.$ Tucson $12.$ Denver $13.$ Fort Wayne $14.$ Fargo $15.$ Cleveland

$8.$ Dallas $$450$ $$375$ $$565$ $$420$ $$660$

$9.$ Kansas City $$880$ $$520$ $$450$ $$380$ $$960$

$10.$ Front Royal $$130$ $$390$ $$375$ $$450$ $$710$

$12$

Following are the available containers at each port:

European Port Available Containers

$1.$ Gdansk $128$

$2.$ Hamburg $207$

$3.$ Lisbon $161$

Following are the available intermodal capacity at each port:

U$.$S$.$ Port Intermodal Capacity $($Containers$)$

$4.$ Norfolk $85$

$5.$ Jacksonville $110$

$6.$ New Orleans $100$

$7.$ Galveston $130$

Inland Port Intermodal Capacity $($Containers$)$

$8.$ Dallas $170$

$9.$ Kansas City $240$

$10.$ Front Royal $140$

Following are the demand at each distribution center:

Distribution Center Demand $($Containers$)$

$11.$ Tucson $93$

$12.$ Denver $78$

$13.$ Fort Wayne $62$

$14.$ Fargo $109$

$15.$ Cleveland $74$

As a business planning manager, your task is 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$.$

Please see next page.

$13$

Question #$25$ Given above information, what is the minimum total shipping cost achievable for this

supply chain?

A$)$ $$1,067,560$

B$)$ $$1,114,755$

C$)$ $$1,126,505$

D$)$ $$1,155,820$

E$)$ $$1,162,375$

F$)$ $$1,164,515$

G$)$ $$1,176,830$

H$)$ $$1,186,715$

I$)$ $$1,198,225$

J$)$ $$1,201,165$

K$)$ Infeasible solution: cannot be solved, one or more of the requirements cannot be

satisfied.

L$)$ None of the above