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Jackson Paper Mills, Inc., has plants in Boone, NC and Augusta, Georgia. Warehouses are located in Tampa, FL and Winchester, VA. Distributors are located in Detroit, MI; Knoxville, TN; and New Orleans, LA. Products are shipped from the plants to the warehouses and from the warehouses to the distributors. There is no storage at the warehouses so any product entering the warehouses must be shipped to distributors. The plant capacities and distributor demands are shown in the tables below:

Plant

Capacity
Dsitributor Demand
Boone 400
Detroit 200
Augusta 250
Knoxville 300



New Orleans 200

The unit transportation costs ($) for the shipments from the two plants to the two warehouses and from the two warehouses to the three distributors are shown below:



To Warehouse To Warehouse


Tampa Winchester
From Plant

Boone

12 11
From Plant Augusta 9 14


To Distributor To Distributor To Distributor


Detroit Knoxville New Orleans
From Warehouse Tampa 18 14 13
From Warehouse Winchester 16 10 12

Formulate this problem in Excel and solve to determine the minimum shipping costs required to meet demands. (Hint: you will not be able to satisfy all demands)

a) How many decision variables does this problem have?

b) Not counting the non-negativity constraint - how many constraints does this problem have?

c) What is the total cost to minimize shipping costs from the plants to the distributors?

d) Which routes had zero units shipped?

e) Which distributor was unable to meet its demand?

f) How many units should be shipped from Boone to Winchester?

g) How many units should be from Augusta to Tampa?

h) How many units should be from Tampa to Detroit?

i) How many units should be from Tampa to New Orleans?

j) How many units should be from Winchester to Detroit?

k) How many units should be from Winchester to Knoxville?

l) How many units should be from Winchester to New Orleans?

 

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92671536

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