Question
Walton Water has manufacturing plants in Reno, Sacramento and Richmond. Water manufactured from these plants are packaged and shipped to warehouses in St. Louis and
Walton Water has manufacturing plants in Reno, Sacramento and Richmond. Water manufactured from these plants are packaged and shipped to warehouses in St. Louis and Fargo where they are tested and re-boxed for distribution to final customers in Boston, Orlando, and Charlotte. The network of transshipment routes shown below indicates the cost associated with shipping a box from the plants to the warehouses and then the cost of shipping the repackaged units from the warehouses to the final customers.
Assume that the supply and demand requirements are as shown in the table below.
Plant | Supply | Customer | Demand |
Reno | 4000 | Boston | 3500 |
Sacramento | 3500 | Orlando | 3500 |
Richmond | 2500 | Charlotte | 3000 |
From the table above it is to be understood that Reno can supply a maximum of 4000 units a month, while Charlotte has monthly demand of 3000 units. The company would like to determine the lowest cost shipping and distribution plan. Formulate and solve a linear programming model to determine the optimal solution then answer questions #5-8. (Appendix 10.1 shows you how to use MS Excel Solver to solve the problem.)
How many units are shipped through the St. Louis transshipment point? How many units are shipped through the Fargo transshipment point?
3000 | 7000 |
3500 | 6500 |
2500 | 7500 |
4000 | 6000 |
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