A contractor, Susan Meyer, has to haul gravel to three building sites. She can purchase as much as 18 tons at a gravel pit in the north of the city and 14 tons at one in the south. She needs 10, 5, and 10 tons at sites 1, 2, and 3, respectively. The purchase price per ton at each gravel pit and the hauling cost per ton are given in the table below. Pit North South Hauling Cost per Ton at Site 1 2 3 $100 $160 $180 $140 $190 $110 Price per Ton $300 $420 (a) Susan wishes to determine how much to haul from each pit to each site to minimize the total cost for purchasing and hauling gravel. Formulate this problem as a transportation problem by constructing the appropriate parameter table. (b) Susan now needs to hire the trucks (and their drivers) to do the hauling. Each truck can only be used to haul gravel from a single pit to a single site. In addition to the hauling and gravel costs specified above, there is also a fixed cost of $150 associated with hiring each truck. A truck can haul 5 tons, but it is not required to go full. For each combination of pit and site, there are now two decisions to be made: the number of trucks to be used and the amount of gravel to be hauled. Susan wishes to make those two decisions in order to minimize the total cost for purchasing and hauling gravel. (b1) Formulate an MIP model for this problem. (b2) Use the computer to solve this model.
A contractor, Susan Meyer, has to haul gravel to three building sites. She can purchase as much as 18 tons at a gravel pit in the north of the city and 14 tons at one in the south. She needs 10, 5, and 10 tons at sites 1, 2, and 3, respectively. The purchase price per ton at each gravel pit and the hauling cost per ton are given in the table below. Pit North South Hauling Cost per Ton at Site 1 2 3 $100 $160 $180 $140 $190 $110 Price per Ton $300 $420 (a) Susan wishes to determine how much to haul from each pit to each site to minimize the total cost for purchasing and hauling gravel. Formulate this problem as a transportation problem by constructing the appropriate parameter table. (b) Susan now needs to hire the trucks (and their drivers) to do the hauling. Each truck can only be used to haul gravel from a single pit to a single site. In addition to the hauling and gravel costs specified above, there is also a fixed cost of $150 associated with hiring each truck. A truck can haul 5 tons, but it is not required to go full. For each combination of pit and site, there are now two decisions to be made: the number of trucks to be used and the amount of gravel to be hauled. Susan wishes to make those two decisions in order to minimize the total cost for purchasing and hauling gravel. (b1) Formulate an MIP model for this problem. (b2) Use the computer to solve this model.
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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Transcribed Image Text:**Problem Context**
A contractor, Susan Meyer, needs to transport gravel to three construction sites. She can purchase up to 18 tons from a gravel pit in the north and 14 tons from a pit in the south. The requirements for the construction sites are as follows: 10 tons for site 1, 5 tons for site 2, and 10 tons for site 3. The purchase price per ton from each pit and the hauling cost per ton to each site are provided in the table below.
**Cost Table**
| Pit | Hauling Cost per Ton at Site | | | Price per Ton |
|-------|------------------------------|----------|-----------|---------------|
| | 1 | 2 | 3 | |
| North | $100 | $190 | $160 | $300 |
| South | $180 | $110 | $140 | $420 |
**Transportation Problem Formulation**
(a) Susan needs to decide how much gravel to haul from each pit to each construction site in order to minimize the total cost of purchasing and transporting the gravel. This should be framed as a transportation problem with the use of a parameter table.
(b) Susan must hire trucks (and their drivers) for hauling. Each truck is limited to transporting gravel from one pit to a single site per trip. Additionally, beyond the variable costs for hauling and gravel, a fixed hiring cost of $150 per truck is incurred. Each truck can carry up to 5 tons, but lesser amounts are allowed, too. For each combination of pit and site, two decisions are necessary: selecting the number of trucks and the amount of gravel to be transported. Susan aims to minimize these decisions for total cost savings.
(b1) A Mixed Integer Programming (MIP) model should be formulated for this problem.
(b2) Computational solutions to this model should be sought.
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