Tesla Corporation has three different factories (A, B and C) where they make Premium Electric Sedans, which are then shipped to one of three warehouses (J, K, and L) where Tesla does the final paint job and ensures that the car meets all of their standards, after which the Sedans are then shipped to one of three retail stores (X, Y and Z) where customers can purchase the Sedan. The relevant supply, demand, and per-unit shipping cost information are given in the table below. Set-up and solve a transshipment model, while minimizing the total shipping cost for Tesla Corporation. Factory Supply A 400 B C 500 350 ΤΟ K L A $400 $700 $500 B $800 $500 $ 400 $500 $600 $ 700 C Store Demand From J X 400 Y 325 Z 400 TO From X Y J $600 $ 400 K L Z $ 800 $300 $600 $ 700 $200 $400 $ 500

Practical Management Science
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Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Tesla Corporation has three different factories (A, B and C) where they make Premium Electric
Sedans, which are then shipped to one of three warehouses (J, K, and L) where Tesla does the
final paint job and ensures that the car meets all of their standards, after which the Sedans are
then shipped to one of three retail stores (X, Y and Z) where customers can purchase the Sedan.
The relevant supply, demand, and per-unit shipping cost information are given in the table
below. Set-up and solve a transshipment model, while minimizing the total shipping cost for
Tesla Corporation.
Factory Supply Store Demand
A 400
X
400
500
350
B
C
Y
Z
325
400
TO
K L
$400 $700 $ 500
$800 $500 $400
$500 $600 $ 700
From J
A
B
C
ΤΟ
Y
$ 400
From X
J$ 600
K $300 $600
$200 $400
L
Z
$ 800
$ 700
$ 500
Transcribed Image Text:Tesla Corporation has three different factories (A, B and C) where they make Premium Electric Sedans, which are then shipped to one of three warehouses (J, K, and L) where Tesla does the final paint job and ensures that the car meets all of their standards, after which the Sedans are then shipped to one of three retail stores (X, Y and Z) where customers can purchase the Sedan. The relevant supply, demand, and per-unit shipping cost information are given in the table below. Set-up and solve a transshipment model, while minimizing the total shipping cost for Tesla Corporation. Factory Supply Store Demand A 400 X 400 500 350 B C Y Z 325 400 TO K L $400 $700 $ 500 $800 $500 $400 $500 $600 $ 700 From J A B C ΤΟ Y $ 400 From X J$ 600 K $300 $600 $200 $400 L Z $ 800 $ 700 $ 500
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