Question
You are Distribution Manager for Tom Thornton's bake shop, where you are responsible for the distribution network for frozen donuts from production facilities (Windsor, Ottawa)
You are Distribution Manager for Tom Thornton's bake shop, where you are responsible for the distribution network for frozen donuts from production facilities (Windsor, Ottawa) to large distribution centres (Guelph, Mississauga, Cornwall, North Bay). Windsor is able to produce 50000 units per week. Ottawa can produce 72500 units per week. The cost per unit to distribute to each site is as follows:
Guelph | Mississauga | Cornwall | North Bay | |
Windsor | 0.25 | 35 | 80 | 0.95 |
Ottawa | 0.6 | 0.45 | 0.25 | 80 |
The R&D team has been working on a new top secret donut that has been blowing up in Japan, and conservative weekly demand for the 4 distribution centres will adjust to be as follows:
Guelph - 39750 |
Mississauga - 51650 |
Cornwall - 31500 |
North Bay - 34990 |
If this demand is to be met, Tom Thornton's will need to invest in a new production facility. They are considering one of these cities for the new site; Kingston, Barrie, Sarnia. To build for growth, the facility will have a production capacity of 85000 units per week. These are the estimated costs to distribute to each site.
Guelph | Mississauga | Cornwall | North Bay | |
Kingston | 0.45 | 0.4 | 0.15 | 0.55 |
Barrie | 0.25 | 0.1 | 0.35 | 0.4 |
Sarnia | 0.2 | 0.25 | 0.6 | 0.6 |
Determine the location of the new production facility which will meet all demands, but minimizes the cost of distribution. In your answer, Identify the Decision Variables, Figure Out the Objective Function, Impose the Constraints and provide Optimal Solution using excel solver.
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