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Finnish Furniture manufactures tables in facilities located in three cities-Reno, Denver, and Pittsburgh. The tables are then shipped to three retail stores located in Phoenix, Cleveland, and Chicago. Management wishes to develop a distribution schedule that will meet the demands at the lowest possible cost. The shipping cost per unit from each of the sources to each of the destinations is shown in the following table:

FROM

PHOENIX

CLEVELAND

CHICAGO

RENO

10

16

19

DENVER

12

14

13

PITTSBURGH

18

12

12

The available supplies are 120 units from Reno, 200 from Denver, and 160 from Pittsburgh. Phoenix has a demand of 140 units, Cleveland has a demand 'of 160 units, and Chicago has a demand of 180 units. How many units should be shipped from each manufacturing facility to each of the retail stores if cost is to be minimized? What is the total cost?

a) Word-process the linear programming model below.

Variables

Xij = Number of tables shipped from Plant in City i to Retail Store in City j, 

wherei = 1, 2, 3 and j = 1, 2, 3

Objective Function

Constraints

b) Set up the spreadsheet for Excel Solver. Copy and paste the spreadsheet below.

c) Copy and paste the Answer report below.

d) Write the Optimal Solution below. Note: The Optimal Solutions should include the optimal values for the non-zero variables as well as the objective function.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M9752129

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