The Ortega Food Company needs to ship a tractor-trailer load of green chilies from its warehouse in San Diego to a global distributor in New York City. The route must stop once in the Denver transshipment point for "pepper servicing" reasons. If the company decides to ship directly to NY/NJ, then in must practice "en route" pepper servicing at a cost of $1,000. The company wants to determine which route to take in order to minimize the cost of transporting the chilies. The fully loaded bushel costs associated with shipping between various cities are detailed below: San Diego (Home base) LA (Txfr Ctr) Denver (Service Ctr) St. Louis (Txfr Ctr) Chicago (Txfr Ctr) San Diego LA 0 80 320 N.A. N.A. 80 Denver 130 0 120 0 190 140 N.A. 320 120 St. Louis Chicago Not Avail. N.A. (N.A.) 190 140 0 240 N.A. 320 240 0 NY/NJ (Destination) 1000 980 N.A. N.A. 170 Which route shipping option should Ortega choose? Use Linear programming to identify the path that minimizes the total cost and satisfies all the above-stated shipping and transportation requirements. Justify your response in detail with Excel cost estimates and illustrate the network on the Excel spreadsheet.

The Ortega Food Company needs to ship a tractor-trailer load of green chilies from its warehouse in San Diego to a global distributor in New York City. The route must stop once in the Denver transshipment point for "pepper servicing" reasons. If the company decides to ship directly to NY/NJ, then in must practice "en route" pepper servicing at a cost of $1,000. The company wants to determine which route to take in order to minimize the cost of transporting the chilies. The fully loaded bushel costs associated with shipping between various cities are detailed below: San Diego (Home base) LA (Txfr Ctr) Denver (Service Ctr) St. Louis (Txfr Ctr) Chicago (Txfr Ctr) San Diego LA 0 80 320 N.A. N.A. 80 Denver 130 0 120 0 190 140 N.A. 320 120 St. Louis Chicago Not Avail. N.A. (N.A.) 190 140 0 240 N.A. 320 240 0 NY/NJ (Destination) 1000 980 N.A. N.A. 170 Which route shipping option should Ortega choose? Use Linear programming to identify the path that minimizes the total cost and satisfies all the above-stated shipping and transportation requirements. Justify your response in detail with Excel cost estimates and illustrate the network on the Excel spreadsheet.

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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