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Example: Two-stage distribution problem: RIFIN Company has recently developed a new method of manufacturing a type of chemical. The method involves refining a certain raw material that can be obtained from four overseas suppliers, A, B, C, and D, who have access to the four ports at Vancouver, Boston, Miami, and San Francisco, respectively. RIFIN wants to determine the location for plants that will refine the material. Once refined, the chemical will be transported via trucks to five outlets located in Dallas, Phoenix, Portland, Montreal, and Orlando. After an initial study, the choice of location for RIFIN's refineries has been narrowed down to Denver, Atlanta, and Pittsburgh. Assume that one unit of the raw material is required to make one unit of the chemical. The amount of raw material that can be obtained from suppliers A, B, C, and D and the amount of chemical required at the five outlets are given in the following table (a). The cost of transporting the raw material from each port to each potential refinery and the cost of trucking the chemical to outlets are provided in tables (b) and (c), respectively. Determine the locations of RIFIN's refining plants, the capacities at these plants, and the distribution pattern for the raw material and processed chemical. (a) Supply and demand for four sources and five outlets Raw Material Source Oudet 9cd From Vancouver Boston Miami San Francisco Supply 1000 800 (b) Inland raw material transportation cost To Denver (c) Chemical trucking cost To From Denver Atlanta Pittsburgh 800 700 8 Dallas 28 10 18 Dallas Phomix Portland Montreal Orlando Phoenix 26 22 21 Adanta 13 8 2 11 900 800 12 23 23 600 500 500 Demand Pittsburgh 9 5 Portland Montreal 9 12 30 29 18 Orlando 30 8 21

Example: Two-stage distribution problem: RIFIN Company has recently developed a new method of manufacturing a type of chemical. The method involves refining a certain raw material that can be obtained from four overseas suppliers, A, B, C, and D, who have access to the four ports at Vancouver, Boston, Miami, and San Francisco, respectively. RIFIN wants to determine the location for plants that will refine the material. Once refined, the chemical will be transported via trucks to five outlets located in Dallas, Phoenix, Portland, Montreal, and Orlando. After an initial study, the choice of location for RIFIN's refineries has been narrowed down to Denver, Atlanta, and Pittsburgh. Assume that one unit of the raw material is required to make one unit of the chemical. The amount of raw material that can be obtained from suppliers A, B, C, and D and the amount of chemical required at the five outlets are given in the following table (a). The cost of transporting the raw material from each port to each potential refinery and the cost of trucking the chemical to outlets are provided in tables (b) and (c), respectively. Determine the locations of RIFIN's refining plants, the capacities at these plants, and the distribution pattern for the raw material and processed chemical. (a) Supply and demand for four sources and five outlets Raw Material Source Oudet 9cd From Vancouver Boston Miami San Francisco Supply 1000 800 (b) Inland raw material transportation cost To Denver (c) Chemical trucking cost To From Denver Atlanta Pittsburgh 800 700 8 Dallas 28 10 18 Dallas Phomix Portland Montreal Orlando Phoenix 26 22 21 Adanta 13 8 2 11 900 800 12 23 23 600 500 500 Demand Pittsburgh 9 5 Portland Montreal 9 12 30 29 18 Orlando 30 8 21

Practical Management Science
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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Example: Two-stage distribution problem: RIFIN Company has recently developed a new method of manufacturing a type of chemical. The method involves refining a certain raw material that can be obtained from four overseas suppliers, A, B, C, and D, who have access to the four ports at Vancouver, Boston, Miami, and San Francisco, respectively. RIFIN wants to determine the location for plants that will refine the material. Once refined, the chemical will be transported via trucks to five outlets located in Dallas, Phoenix, Portland, Montreal, and Orlando. After an initial study, the choice of location for RIFIN's refineries has been narrowed down to Denver, Atlanta, and Pittsburgh. Assume that one unit of the raw material is required to make one unit of the chemical. The amount of raw material that can be obtained from suppliers A, B, C, and D and the amount of chemical required at the five outlets are given in the following table (a). The cost of transporting the raw material from each port to each potential refinery and the cost of trucking the chemical to outlets are provided in tables (b) and (c), respectively. Determine the locations of RIFIN's refining plants, the capacities at these plants, and the distribution pattern for the raw material and processed chemical. (a) Supply and demand for four sources and five outlets Raw Material Source Oudet QUD From Vancouver Boston Miami San Francisco Supply 1000 800 800 700 (b) Inland raw material transportation cost To Denver (e) Chemical trucking cost To From Denver Atlanta Pittsburgh 4 28 10 18 12 11 Dallas Dallas Phoenix Portland Montreal Orlando Adanta 26 22 21 13 8 2 11 900 800 12 23 23 600 500 500 Demand Pittsburgh Phoenix Portland Montreal 9 5 9 12 30 29 18 Orlando 30 8 21
Transcribed Image Text:Example: Two-stage distribution problem: RIFIN Company has recently developed a new method of manufacturing a type of chemical. The method involves refining a certain raw material that can be obtained from four overseas suppliers, A, B, C, and D, who have access to the four ports at Vancouver, Boston, Miami, and San Francisco, respectively. RIFIN wants to determine the location for plants that will refine the material. Once refined, the chemical will be transported via trucks to five outlets located in Dallas, Phoenix, Portland, Montreal, and Orlando. After an initial study, the choice of location for RIFIN's refineries has been narrowed down to Denver, Atlanta, and Pittsburgh. Assume that one unit of the raw material is required to make one unit of the chemical. The amount of raw material that can be obtained from suppliers A, B, C, and D and the amount of chemical required at the five outlets are given in the following table (a). The cost of transporting the raw material from each port to each potential refinery and the cost of trucking the chemical to outlets are provided in tables (b) and (c), respectively. Determine the locations of RIFIN's refining plants, the capacities at these plants, and the distribution pattern for the raw material and processed chemical. (a) Supply and demand for four sources and five outlets Raw Material Source Oudet QUD From Vancouver Boston Miami San Francisco Supply 1000 800 800 700 (b) Inland raw material transportation cost To Denver (e) Chemical trucking cost To From Denver Atlanta Pittsburgh 4 28 10 18 12 11 Dallas Dallas Phoenix Portland Montreal Orlando Adanta 26 22 21 13 8 2 11 900 800 12 23 23 600 500 500 Demand Pittsburgh Phoenix Portland Montreal 9 5 9 12 30 29 18 Orlando 30 8 21
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