Fairway Inc. makes custom golf clubs. They are manufactured in 3 plants in Denver, Phoenix, and Dallas. They are then shipped to distribution centers in Sacramento, Salt Lake, Chicago, Albuquerque, and New York. Since shipping costs are a major expense, management requires an analysis to determine the optimal shipping routes and quantities shipped along those routes. Each plant has a maximum production capacity and each distribution center has a demand that must be satisfied. You must determine how many clubs to send along each route, staying within plant capacity, meeting demand, for the lowest total shipping cost.   Shipping Costs per route Plants Sacramento Salt Lake Chicago Albeq New York Capacity Denver $10 $8 $6 $5 $4 310 Phoenix $6 $5 $4 $3 $6 260 Dallas $3 $4 $5 $5 $9 280 Demand 180 80 200 160 220                   Number to ship from plant to warehouse:           Plants Sacramento Salt Lake Chicago Albeq New York Total Shipped Denver             Phoenix

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Fairway Inc. makes custom golf clubs. They are manufactured in 3 plants in Denver, Phoenix, and Dallas. They are then shipped to distribution centers in Sacramento, Salt Lake, Chicago, Albuquerque, and New York. Since shipping costs are a major expense, management requires an analysis to determine the optimal shipping routes and quantities shipped along those routes. Each plant has a maximum production capacity and each distribution center has a demand that must be satisfied. You must determine how many clubs to send along each route, staying within plant capacity, meeting demand, for the lowest total shipping cost.

 

Shipping Costs per route
Plants Sacramento Salt Lake Chicago Albeq New York Capacity
Denver $10 $8 $6 $5 $4 310
Phoenix $6 $5 $4 $3 $6 260
Dallas $3 $4 $5 $5 $9 280
Demand 180 80 200 160 220  
             
  Number to ship from plant to warehouse:          
Plants Sacramento Salt Lake Chicago Albeq New York Total Shipped
Denver            
Phoenix            
Dallas            
Total Received:            
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