Linear

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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-All constraints and linear programs should be derived with explanation and hand written. Linear programs (when asked for) should then be written in COMPLETE PROPER FORM (ALL constraints , organized order and clear identi cation of variable meanings).
ˆ All diagrams and graphics should be presented (repeated) enough times to clearly demonstrate the work process that was followed in carrying out your work. Legibility is necessary.
ˆ Excel can be used for calculations, but the pdf of this work must be \hand" augmented with clear indications of what was being carried out
ˆ Excel sheets involving solver must be fully explained and the solver window itself should be screen capped and submitted as part of your presentation to show the linear program you
asked excel to solve.

 

This is the Steps please follow.

And I need you to write the steps please. Step by Step

 

1. A local shipping company D.G.H.M. Inc. has recently acquired the a large rupply of PS5'n. As
a result they have set up in 5 warehouses in the lower parts of Ontario. From these warehouses
they will ship the products to the 7 stores they have throughout the area. The tables below
indicate the supply, demand and shipping costs per product from each warehouse to each store.
Warehouse Supply
Store
Demand
A
550
Store 1
625
B
725
Store 2
300
C
850
Store 3
225
D
900
Store 4
425
E
400
Store 5
650
Store 6
750
Store 7
450
with shipping oosts per unit of
Warehouse\Store 1
3
5
6
21
11
8.
6
11
7 18 12
7 25 15
4 22
5 30 15
B
10
13
C
11
12 | 14 14
9
7
10
6
10
E
11
11
12
For this problem complete the following:
• Solving this problem using the transportation simplex method (i.e. Chapter 19) to min-
imize the transportation costs can take numerous iterations. Clearly show with expla-
nations between steps (this is not a smnall problem) the first 5 iterations of this method.
Clearly state your delivery answer between iterations and the final costs. What do you
observe about these costs.
For this problem clearly derive the Lincar program which would solve this problem.
Clearly label your constraints.
Implement solver in Excel to confirm the answer found above is not yet optimal. What is
the optimal solution and final cost.
• Assume there was a restriction on cach warehouse that no truck could carry more that 200
units and that cach route can only accommodate one truck maximum due to regulations.
What new constraints would you add to your linear program. Add these in Excel and
determine your new delivery solution and cost. How does this regulation impact the costs
for D.G.H.M. Ine?
Transcribed Image Text:1. A local shipping company D.G.H.M. Inc. has recently acquired the a large rupply of PS5'n. As a result they have set up in 5 warehouses in the lower parts of Ontario. From these warehouses they will ship the products to the 7 stores they have throughout the area. The tables below indicate the supply, demand and shipping costs per product from each warehouse to each store. Warehouse Supply Store Demand A 550 Store 1 625 B 725 Store 2 300 C 850 Store 3 225 D 900 Store 4 425 E 400 Store 5 650 Store 6 750 Store 7 450 with shipping oosts per unit of Warehouse\Store 1 3 5 6 21 11 8. 6 11 7 18 12 7 25 15 4 22 5 30 15 B 10 13 C 11 12 | 14 14 9 7 10 6 10 E 11 11 12 For this problem complete the following: • Solving this problem using the transportation simplex method (i.e. Chapter 19) to min- imize the transportation costs can take numerous iterations. Clearly show with expla- nations between steps (this is not a smnall problem) the first 5 iterations of this method. Clearly state your delivery answer between iterations and the final costs. What do you observe about these costs. For this problem clearly derive the Lincar program which would solve this problem. Clearly label your constraints. Implement solver in Excel to confirm the answer found above is not yet optimal. What is the optimal solution and final cost. • Assume there was a restriction on cach warehouse that no truck could carry more that 200 units and that cach route can only accommodate one truck maximum due to regulations. What new constraints would you add to your linear program. Add these in Excel and determine your new delivery solution and cost. How does this regulation impact the costs for D.G.H.M. Ine?
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