hen say the company involved here anticipates that the demand at d1 and d2 will grow to 100 units at each site. Since s1 and s2 do not have the capacity to meet these demands, the company is considering adding up to 4 other source locations. There is more information of this part of the problem on slide 3. Source sites 3, 4, 5, and 6 have construction costs $10, 10, 15, and 5, respectively, and will have source units amounts of 40, 40, 60, and 20, respectively. The shipping costs from sources 3, 4, 5, and 6 to d1 would be $1, 1.50, 1.75, and 1.25, respectively. Similarly, the shipping costs from sources 3, 4, 5, and 6 to d2 would be $1.25, 1.75, 1.50, and 1 respectively. The objective here is to minimize the cost of shipping the new demand amounts at sites d1 and d2, by considering the addition of potential sites, along with the constraints implied by a transportation problem. Include the answer report of this part of your Excel Solver work and answer by writing out complete sentences to the following: 1) which site(s) is(are) added? 2) What is the total minimized cost? 3) Which sources ship to d1 and how much does each send to d1? 4) Which sources ship to d2 and how much does each send to d2?

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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Then say the company involved here anticipates that the demand at
d1 and d2 will grow to 100 units at each site. Since s1 and s2 do not have the
capacity to meet these demands, the company is considering adding up to 4 other
source locations. There is more information of this part of the problem on slide 3.

Source sites 3, 4, 5, and 6 have construction costs $10, 10, 15, and 5, respectively,
and will have source units amounts of 40, 40, 60, and 20, respectively.
The shipping costs from sources 3, 4, 5, and 6 to d1 would be $1, 1.50, 1.75, and
1.25, respectively. Similarly, the shipping costs from sources 3, 4, 5, and 6 to d2
would be $1.25, 1.75, 1.50, and 1 respectively.
The objective here is to minimize the cost of shipping the new demand amounts at
sites d1 and d2, by considering the addition of potential sites, along with the
constraints implied by a transportation problem.
Include the answer report of this part of your Excel Solver work and answer by
writing out complete sentences to the following:
1) which site(s) is(are) added?
2) What is the total minimized cost?
3) Which sources ship to d1 and how much does each send to d1?
4) Which sources ship to d2 and how much does each send to d2?

Supply
Demand
s1
$2
d1
80
60
$1
$2
s2
d2
40
60
$0.50
Transcribed Image Text:Supply Demand s1 $2 d1 80 60 $1 $2 s2 d2 40 60 $0.50
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