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Anational catalog and the internet retailer has three warehouses and three major distribution centers located around the country. Normally, items are shipped directly from the warehouses to the distribution centers; however, each of the distribution centers can also be used as an intermediate transshipment point. The transportation cost (dollars per unit) between warehouses and distribution centers, the supply at the warehouses (100 units), and the demand at the distribution centers (100 units) for a specific week are shown in the following table. Warehouse Distribution Center Supply A B C 1 $ 12 $ 11 $7 70 2 3 $8 $ 6 $ 14 80 $9 $ 10 $ 12 50 Dem and 60 100 40 The transportation cost (dollar per unit) between the distribution centers are: Distribution Distribution Center Center A A S- B $ 8 с $3 B C $ 1 $7 S- $2 $2 S- a. Develop a network representation of this problem. b. Formulate the problem as a Linear Programming model to determine the optimal shipments between warehouses and distribution centers to minimize total transportation cost. Anational catalog and the internet retailer has three warehouses and three major distribution centers located around the country. Normally, items are shipped directly from the warehouses to the distribution centers; however, each of the distribution centers can also be used as an intermediate transshipment point. The transportation cost (dollars per unit) between warehouses and distribution centers, the supply at the warehouses (100 units), and the demand at the distribution centers (100 units) for a specific week are shown in the following table. Warehouse Distribution Center Supply A B C 1 $ 12 $ 11 $7 70 2 3 $8 $ 6 $ 14 80 $9 $ 10 $ 12 50 Dem and 60 100 40 The transportation cost (dollar per unit) between the distribution centers are: Distribution Distribution Center Center A A S- B $ 8 с $3 B C $ 1 $7 S- $2 $2 S- a. Develop a network representation of this problem. b. Formulate the problem as a Linear Programming model to determine the optimal shipments between warehouses and distribution centers to minimize total transportation cost.
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Operations Management Creating Value Along the Supply Chain
ISBN: 978-0470525906
7th Edition
Authors: Roberta S. Russell, Bernard W. Taylor
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