He has 3 production facilities (X, Y, Z) and distributes its products to 3 various customers (K, L, M) from these production facilities. The daily production capacity of each production facility and the daily distribution costs are given in the below table. Daily demands of customers are 10, 15, and 20, respectively. Production Costs (S) Customer K Customer L. Customer M Сарасity Facility X 2200 2100 2000 35 Facility Y 2000 2050 2200 42 Facility Z 2100 2100 2050 38 1) Formulate a balanced transportation problem that could be used to determine how to minimize the total cost of meeting the demand of customers. The formulation should be in open form and decision variables should be defined as integer amounts. 2) Use LINGO/OPL/EXCEL to solve your model. Write down the results of the decision variables and the objective function. 3) Use the Northwest Corner method to find a basic feasible solution. Write down the results of the decision variables and the objective function.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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He has 3 production facilities (X, Y, Z) and distributes
its products to 3 various customers (K, L, M) from these production facilities.
The daily production capacity of each production facility
and the daily distribution costs are given in the below table.
Daily demands of customers are 10, 15, and 20, respectively.
Production
Costs ($)
Customer K
Customer L
Customer M
Сараcity
Facility X
2200
2100
2000
35
Facility Y
2000
2050
2200
42
Facility Z
2100
2100
2050
38
1) Formulate a balanced transportation problem that could be used to
determine how to minimize the total cost of meeting the demand of customers.
The formulation should be in open form and decision variables should be
defined as integer amounts.
2) Use LINGO/OPL/EXCEL to solve your model. Write down the results of the
decision variables and the objective function.
3) Use the Northwest Corner method to find a basic feasible solution. Write
down the results of the decision variables and the objective function.
Transcribed Image Text:He has 3 production facilities (X, Y, Z) and distributes its products to 3 various customers (K, L, M) from these production facilities. The daily production capacity of each production facility and the daily distribution costs are given in the below table. Daily demands of customers are 10, 15, and 20, respectively. Production Costs ($) Customer K Customer L Customer M Сараcity Facility X 2200 2100 2000 35 Facility Y 2000 2050 2200 42 Facility Z 2100 2100 2050 38 1) Formulate a balanced transportation problem that could be used to determine how to minimize the total cost of meeting the demand of customers. The formulation should be in open form and decision variables should be defined as integer amounts. 2) Use LINGO/OPL/EXCEL to solve your model. Write down the results of the decision variables and the objective function. 3) Use the Northwest Corner method to find a basic feasible solution. Write down the results of the decision variables and the objective function.
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