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Using the template provided. Formulate a linear programming model (identify and define decision variables, objective function and constraints) that can be used to minimize the
Using the template provided. Formulate a linear programming model (identify and define decision variables, objective function and constraints) that can be used to minimize the transportation cost of a logistics system that will deliver skateboards from the factories to the distribution centers and from the distribution centers to the retailers. Use Solver in Microsoft Excel to solve the model. Give the values of each decision variable and the objective function.
ABC Sports produces, distributes, and sells high-quality skateboards. Its supply chain consists of three factories (located in Detroit, Los Angeles, and Austin) that produce skateboards. The Detroit and Los Angeles facilities can produce 350 skateboards per week, but the Austin plant is larger and can produce up to 700 skateboards per week. Skateboards must be shipped from the factories to one of four distribution centers, or DCs (located in Iowa, Maryland, Idaho, and Arkansas). Each distribution center can process (repackage, mark for sale, and ship) at most 500 skateboards per week. Skateboards are then shipped from the DCs to retailers. ABC Sports supplies three major U.S. retailers: Just Sports, Sports 'N Stuff, and The Sports Dude. The weekly demands are 200 skateboards at Just Sports, 500 skateboards at Sports 'N Stuffand 650 skateboards at The Sports Dude. The following tables display the per unit costs for shipping skateboards between the factories and DCs and for shipping between the DCs and the retailers Factory/DCS Detroit Los Angeles Austin Iowa $25.00 $35.00 $40.00 Shipping Costs ($ per skateboard) Maryland Idaho $25.00 $35.00 $45.00 $35.00 $40.00 $42.50 Arkansas $40.00 $42.50 $32.50 Retailers/DCs Just Sports Sports 'N Stuff The Sports Dude Iowa $30.00 $27.50 $30.00 Maryland $20.00 $32.50 $40.00 Idaho $35.00 $40.00 $32.50 Arkansas $27.50 $25.00 $42.50 D F G I J K L M Units Shipped In Out Constraints LHS RHS . B C E 1 ABC Sports Minimize Total Cost 2 3 Arc Cost Xij 4 Detroit - Iowa 25 5 Detroit - Maryland 25 Node 6 Detroit - Idaho 35 Detroit 7 Detroit - Arkansas 40 LA 8 LA - Iowa 35 Austin 9 LA - Maryland 45 Iowa 10 LA - Idaho 35 Maryland 11 LA - Arkansas 42.5 Idaho 12 Austin - Iowa 40 Arkansas 13 Austin - Maryland 40 Just Sports 14 Austin - Idaho 42.5 Sports Stuff 15 Austin - Arkansas 32.5 Sports Dude 16 Iowa - Just Sports 30 17 Iowa - Sports Stuff 27.5 18 Iowa - Sports Dude 30 19 Maryland - Just Sports 20 20 Maryland - Sports Stuff 32.5 21 Maryland - Sports Dude 40 22 Idaho - Just Sports 35 23 Idaho - Sports Stuff 40 24 Idaho - Sports Dude 32.5 25 Arkansas - Just Sports 27.5 26 Arkansas - Sports Stuff 25 27 Arkansas - Sports Dude 42.5 28Step by Step Solution
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