A manufacturing facility in Omaha must ship its product to customers in Bismarck, Little Rock, Toronto, Denver,

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A manufacturing facility in Omaha must ship its product to customers in Bismarck, Little Rock, Toronto, Denver, Seattle, and Tulsa. The manufacturer can ship the product by rail, by truck, or by a combination of rail and truck. The weekly demands at each customer are shown. Production capacity is not an issue for the manufacturer, but there are limits on the amount of the product that can be shipped weekly by rail and truck, and those limits are also shown. Finally, a cost matrix, which indicates the per-unit shipping cost for each mode of transportation to each customer€™s city, is given in a from/to cost matrix. Using this information, identify the mode of transport and the amount to be shipped to each customer so that the manufacturing facility minimizes its overall shipping cost. Hint: Let the modes of transportation be the sources of supply.
Mode of Transport€¦€¦.Weekly Shipping Capacity
Rail€¦€¦€¦€¦€¦20,000
Truck€¦€¦€¦€¦€¦€¦14,500
Customer€¦.Weekly Demand
Bismarck€¦€¦€¦€¦.€‚1,500
Little Rock€¦€¦..€‚2,000
Toronto€¦€¦€¦€¦..€‚9,000
Denver€¦€¦€¦.€‚7,500
Seattle€¦€¦€¦..10,000
Tulsa€¦€¦€¦€¦€‚2,500
A manufacturing facility in Omaha must ship its product to
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Managing Supply Chain and Operations An Integrative Approach

ISBN: 978-0132832403

1st edition

Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb

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