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NETWORK FLOW OPTIMIZATION - EXAMPLE . Distribution network for a single product Two production plants P1 and P2 Plant P1 has unlimited supply capacity, Plant P2 has a supply capacity of 60,000 units/year • Production cost is the same at both plants. • Two warehouses W1 and W2 with identical warehouse handling costs and both having unlimited capacity. • Three market areas C1, C2 and C3 with demand of 50000, 100000 and 50000 units/year. • Unit transportation costs: W1 W2 Plant →→ Warehouse P1 $0 $5 P2 $4 $2 Warehouse Market Center C1 C2 C3 $3 $4 $5 $2 $1 $2

NETWORK FLOW OPTIMIZATION - EXAMPLE . Distribution network for a single product Two production plants P1 and P2 Plant P1 has unlimited supply capacity, Plant P2 has a supply capacity of 60,000 units/year • Production cost is the same at both plants. • Two warehouses W1 and W2 with identical warehouse handling costs and both having unlimited capacity. • Three market areas C1, C2 and C3 with demand of 50000, 100000 and 50000 units/year. • Unit transportation costs: W1 W2 Plant →→ Warehouse P1 $0 $5 P2 $4 $2 Warehouse Market Center C1 C2 C3 $3 $4 $5 $2 $1 $2

Practical Management Science
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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Modified Supply Costs - Using the EXCEL solver example what is the optimal solution if the supply costs are changed as follows: P1 to W1 = $3.75 and W2 to C2 = $0.85. All other data is the same as in Slide 35 Lecture-2. O936200 O 682500 1020000 O 1092500 O 749000
Transcribed Image Text:Modified Supply Costs - Using the EXCEL solver example what is the optimal solution if the supply costs are changed as follows: P1 to W1 = $3.75 and W2 to C2 = $0.85. All other data is the same as in Slide 35 Lecture-2. O936200 O 682500 1020000 O 1092500 O 749000
NETWORK FLOW OPTIMIZATION - EXAMPLE • Distribution network for a single product Two production plants P1 and P2 Plant P1 has unlimited supply capacity, Plant P2 has a supply capacity of 60,000 units/year Production cost is the same at both plants. Two warehouses W1 and W2 with identical warehouse handling costs and both having unlimited capacity. • Three market areas C1, C2 and C3 with demand of 50000, 100000 and 50000 units/year. • Unit transportation costs: W1 W2 Plant →→ Warehouse P1 P2 $0 $4 $5 $2 Warehouse →→ Market Center C1 C2 C3 $3 $4 $5 $2 $1 $2
Transcribed Image Text:NETWORK FLOW OPTIMIZATION - EXAMPLE • Distribution network for a single product Two production plants P1 and P2 Plant P1 has unlimited supply capacity, Plant P2 has a supply capacity of 60,000 units/year Production cost is the same at both plants. Two warehouses W1 and W2 with identical warehouse handling costs and both having unlimited capacity. • Three market areas C1, C2 and C3 with demand of 50000, 100000 and 50000 units/year. • Unit transportation costs: W1 W2 Plant →→ Warehouse P1 P2 $0 $4 $5 $2 Warehouse →→ Market Center C1 C2 C3 $3 $4 $5 $2 $1 $2
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