Question
You are currently working for the supply chain management team at Baby Boom. Baby Boom manufactures and distributes two types of products: baby car seats
You are currently working for the supply chain management team at Baby Boom. Baby Boom manufactures and distributes two types of products: baby car seats and strollers. They operate two plants and two DCs in the United States, to serve their three main markets. They manufacture both of their products in the two plants, but there is a certain maximum capacity for each of the products in the manufacturing plants (see Table 1).
Table 1. Plant capacity (in units per month)
Car seat | Stroller | |
---|---|---|
Plant 1 | 1800 | 2000 |
Plant 2 | 1000 | 3500 |
Once the products are ready and packaged in boxes, they are sent to the DCs. DCs also have a certain maximum capacity. Since both products have a similar volume once packaged, DC capacity can be used indiscriminately by any product (see Table 2).
Table 2. DC capacity (in units per month)
Capacity | |
---|---|
DC1 | 4000 |
DC2 | 5000 |
From the DC, the products are distributed to the markets. The demand for each of the products in these markets is displayed in Table 3.
Table 3. Demand (in units per month)
Car seat | Stroller | |
---|---|---|
Market 1 | 652 | 1123 |
Market 2 | 1234 | 1523 |
Market 3 | 871 | 1080 |
Your boss has asked you to build an optimization model to determine what is the optimal transportation cost for this network. He has provided you with the distances (in miles) between plants, DCs and markets (Table 4). He also mentioned that the inbound transportation cost (from plants to DCs) is $0.0071 per unit per mile and the outbound transportation cost (from DCs to markets) is $0.0822 per unit per mile.
Table 4. Distances (in miles)
DC1 | DC2 | |
---|---|---|
Plant 1 | 78 | 43 |
Plant 2 | 43 | 14 |
Market 1 | 68 | 100 |
Market 2 | 11 | 33 |
Market 3 | 56 | 75 |
What is the optimal total transportation cost for this network?
Round your answer to the nearest integer.
unanswered
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