General Appliance Corp. produces refrigerators at three plants: Marietta, Minneapolis and Phoenix. They ship them to major retail outlets in Chicago, Los Angeles and New York City. The accounting, production and marketing departments have provided the following information in the given tables; Plant capacities over the next planning period, retail outlet demand and unit cost of shipping between any plant and retail outlet. The company would like to minimize the cost of their transportation network by identifying how many units to ship between each plant and retail outlet. 1. Formulate this linear optimization problem by clearly listing the decision variables, objective function and constraints.
Q1. General Appliance Corp. produces refrigerators at three plants: Marietta, Minneapolis and Phoenix. They ship them to major retail outlets in Chicago, Los Angeles and New York City. The accounting, production and marketing departments have provided the following information in the given tables; Plant capacities over the next planning period, retail outlet demand and unit cost of shipping between any plant and retail outlet.
The company would like to minimize the cost of their transportation network by identifying how many units to ship between each plant and retail outlet.
1. Formulate this linear optimization problem by clearly listing the decision variables, objective function and constraints.
2. Create a spreadsheet model for this problem and solve it using Solver. What is the minimum cost?
|
Plant |
Supply |
|
Marietta |
1200 |
|
Minneapolis |
800 |
|
Phoenix |
1600 |
|
Retail Outlet |
Demand |
|
Chicago |
650 |
|
Los Angeles |
1450 |
|
New York City |
1500 |
|
Transportation Cost |
Chicago |
Los Angeles |
New York City |
|
Marietta |
$11.52 |
$21.56 |
$14.35 |
|
Minneapolis |
$8.11 |
$17.84 |
$16.26 |
|
Phoenix |
$16.75 |
$7.64 |
$26.55
|
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