A seafood distribution company specializes in delivering fresh lobsters from their harvesting sites to various restaurants across the coastline. The company operates a fleet of sailing vessels, each with different capacities and operational costs. Due to the perishable nature of lobsters, the company aims to optimize its distribution network to minimize total costs while meeting the demand of each restaurant. Given Data: Sailing Vessels (with capacities and fixed operational costs): Vessel 1 (V1): Capacity = 300 kg, Fixed Cost = $1,000 Vessel 2 (V2): Capacity = 200 kg, Fixed Cost = $900 Vessel 3 (V3): Capacity = 400 kg, Fixed Cost = $1,200 Vessel 4 (V4): Capacity = 100 kg, Fixed Cost = $600 Restaurants (with lobster demand): Restaurant A: Demand = 250 kg Restaurant B: Demand = 150 kg Restaurant C: Demand = 300 kg Restaurant D: Demand = 100 kg Transportation Costs (per kg) from Harvesting Sites to Restaurants: Restaurant A Restaurant B Restaurant C Restaurant D V1 $2 $3 $2.5 $4 V2 $3 $2.5 $3.5 $2 V3 $2 $3.5 $2 $3 V3 $1 $2.5 $2 $2 Objective: Determine which sailing vessels to use and the optimal way to distribute lobsters from the harvesting sites to the restaurants to minimize the total costs, comprising both fixed operational costs and variable transportation costs. Carefully write the mathematical formulations including the constraints. Using Excel Solver, Minimize the total cost of the lobster supply chain.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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A seafood distribution company specializes in delivering fresh lobsters from their harvesting sites to various restaurants across the coastline. The company operates a fleet of sailing vessels, each with different capacities and operational costs. Due to the perishable nature of lobsters, the company aims to optimize its distribution network to minimize total costs while meeting the demand of each restaurant.

Given Data:

Sailing Vessels (with capacities and fixed operational costs):

Vessel 1 (V1): Capacity = 300 kg, Fixed Cost = $1,000

Vessel 2 (V2): Capacity = 200 kg, Fixed Cost = $900

Vessel 3 (V3): Capacity = 400 kg, Fixed Cost = $1,200

Vessel 4 (V4): Capacity = 100 kg, Fixed Cost = $600

Restaurants (with lobster demand):

Restaurant A: Demand = 250 kg

Restaurant B: Demand = 150 kg

Restaurant C: Demand = 300 kg

Restaurant D: Demand = 100 kg

Transportation Costs (per kg) from Harvesting Sites to Restaurants:

Restaurant A Restaurant B Restaurant C Restaurant D

V1 $2 $3 $2.5 $4

V2 $3 $2.5 $3.5 $2

V3 $2 $3.5 $2 $3

V3 $1 $2.5 $2 $2

Objective:

Determine which sailing vessels to use and the optimal way to distribute lobsters from the harvesting sites to the restaurants to minimize the total costs, comprising both fixed operational costs and variable transportation costs.

Carefully write the mathematical formulations including the constraints.
Using Excel Solver, Minimize the total cost of the lobster supply chain.

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