Question
You Doll & Doll has two facilities that source, procure raw material, manufacture, QAQC and initial Pack for delivery. The company distributes the toys from
You Doll & Doll has two facilities that source, procure raw material, manufacture, QAQC and initial Pack for delivery. The company distributes the toys from these two plants through two distribution centers (DCs) located at Wah & Jhelum, to three different customer regions namely, Islamabad, Rawalpindi, Lahore where the toys are packaged as per demand and sold.
Each plant has a maximum capacity for its weekly supply of toys. Likewise, each region has a minimum weekly demand for toys. Furthermore, distributer has asked to sell toys at their facility calling it factory outlets, so they havedemands as well. The cost to distribute a pallet of toys (100 toys per pallet) between each plant and region depends on the distances between them. The transportation costs, maximum supplies in the plants, and minimum demands intheregionsaresummarizedinthefollowingtables:
Origin Plant | Destination DC | Transportation Cost (Rs/Pallet of toys ) |
Plant 1 | Wah | 5600 |
Jhelum | 4100 | |
Plant 2 | Wah | 5200 |
Jhelum | 4200 |
Origin DC | Destination Region | Transportation Cost (Rs/pallets of toys) |
Wah | Lahore | 7900 |
Rawalpindi | 5200 | |
Islamabad | 4200 |
Jehlum | Lahore | 4700 |
Rawalpindi | 6500 | |
Islamabad | 6700 |
Plant | Maximum Supply (pallets of toys) |
Plant 1 | 1300 |
Plant 2 | 1050 |
Region | Minimum Demand (pallets of toys) |
Lahore | 500 |
Rawalpindi | 1000 |
Islamabad | 350 |
Wah | 100 |
Jhelum | 150 |
In order to minimize total costs, Doll & Doll wishes to optimize the flow of toys from plants to DCs to regions to customers.
- In the optimal solution, what is the minimum total cost of moving the toys from plant toDCs?
- WhatistotaltransportationcostofmovingthetoysfromDCstoregions?
- What is total transportation cost of moving the toys from plant toregions?
Step by Step Solution
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Step: 1
To find the minimum total cost of moving the toys from plants to DCs we need to calculate the transportation cost for each possible route and then det...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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