A company has three manufacturing plants (in Atlanta, Tulsa, and Springfield) that produce a product that is then shipped to one of four distribution centers. The three plants can produce 13, 18, and 12 truckloads of product each week, respectively. Each distribution center needs 10 truckloads of product each week. The shipping costs per truckload between the plants and distribution centers are given in the table. The company needs to determine how much to ship from each plant to each distribution center and would like to minimize total shipping costs.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A company has three manufacturing plants (in Atlanta, Tulsa, and Springfield) that produce a product that is then shipped to one of four distribution centers. The three plants can produce 13, 18, and 12 truckloads of product each week, respectively. Each distribution center needs 10 truckloads of product each week. The shipping costs per truckload between the plants and distribution centers are given in the table. The company needs to determine how much to ship from each plant to each distribution center and would like to minimize total shipping costs.

 

  Distribution Center
Plant A B C D
Atlanta $800 $1,300 $400 $700
Tulsa $1,100 $1,400 $600 $1,000
Springfield $600 $1,200 $800 $900


Formulate an LP to minimize the total shipping costs.(No need to submit. You just keep your LP formulation on your notebook.)

 

How many decision variables do you set up to work on this problem?

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