An auto company currently maintains plants in Cincinnati and Tulsa to supply two distribution centers in Boston and Phoenix. The production and distribution costs, distribution demands as well as facility capacities are given in the table attached. b) Using the intuitive lowest cost method, determines which of the candidate locations, in addition to existing locations, gives the initial solution with a lower cost? c) Using the solutions obtained in b), identify which distribution center still faces a shortage. d) Suppose the company has chosen Houston as their third plant and would like to know the optimal transportation strategy that minimizes overall costs by solving a minimum-cost flow problem. Terry has defined decision variables, represented as xij, to denote the number of items shipped from plant i to distribution center j where i= C(Cincinnati), T(Tulsa), and H(Houston) j= B(Boston) and P(Phoenix)
An auto company currently maintains plants in Cincinnati and Tulsa to supply two distribution
centers in Boston and Phoenix. The production and distribution costs, distribution demands as
well as facility capacities are given in the table attached.
b) Using the intuitive lowest cost method, determines which of the candidate locations, in
addition to existing locations, gives the initial solution with a lower cost?
c) Using the solutions obtained in b), identify which distribution center still faces a shortage.
d) Suppose the company has chosen Houston as their third plant and would like to know the optimal
transportation strategy that minimizes overall costs by solving a minimum-cost flow problem.
Terry has defined decision variables, represented as xij, to denote the number of items shipped
from plant i to distribution center j where
i= C(Cincinnati), T(Tulsa), and H(Houston)
j= B(Boston) and P(Phoenix)
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