A company will be producing the same new product at two different factories, and then the productmust be shipped to two warehouses. Factory 1 can send an unlimited amount by rail to warehouse 1only, whereas factory 2 can send an unlimited amount by rail to warehouse 2 only. However,independent truckers can be used to ship up to 50 units from each factory to a distribution center,from which up to 50 units can be shipped to each warehouse. The shipping cost per unit for eachalternative is shown in the following table, along with the amounts to be produced at the factories andthe amounts needed at the warehouses.FromFactory 1Factory 2ToDistribution centerAllocationUnit Shipping CostDistributionCenter34Warehouse1726029490Output8070(a) Formulate the network representation of this problem as a minimum cost flow problem.(b) Formulate the linear programming model for this problem.

Answered: A company will be producing the same…

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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The Superior Manufacturing Company wants to make two shipments from Dallas, Texas to Los Angeles, California. The first shipment weighs 10,000 pounds and the second shipment weighs 15,000 pounds. The carrier charges $10 per hundredweight (cwt) if the goods are shipped separately and they arrive in two days. If the goods can be consolidated into one shipment the cost would be $8 per cwt to ship them in a truckload lot, but it would cost $500 to consolidate the shipments at the carrier’s warehouse and it would take three days. Which is the lowest cost approach and which approach would you select?
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