Classic Construction Company specializes in constructing buildings with a period-correct architectural style. Three of their current projects,
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- Classic Construction Company specializes in constructing buildings with a period-correct architectural style. Three of their current projects, one in Dallas, one in St. Louis, and one in Atlanta, all require a particular reddish “scratch-faced brick,” which can only be purchased from two suppliers, one based in Newkirk, Ohio and one based in Tulsa, Oklahoma. The unit purchase costs and the availability of bricks at the two locations are given in the table below:
Unit Costs (per brick) | Available Supply | |
Newkirk | $0.57 | 95,000 (bricks) |
Tulsa | $0.64 | 78,000 (bricks) |
The quantities (“demand”) needed by Classic Construction are given in the table below.
Dallas | St. Louis | Atlanta |
57000 | 44,000 | 68000 |
Suppose that shipping costs are assessed per truck. Each truck can carry up to 10,000 bricks. However, if you send a truck with only 5000 bricks from Newkirk to Atlanta, Classic Construction still pays $4000 for the half-loaded truck. The shipping costs per truck and route are given below:
Shipping costs (per Truck) | |||
Dallas | St. Louis | Atlanta | |
Newkirk | $3000 | $2500 | $4000 |
Tulsa | $1000 | $1500 | $2500 |
- Formulate an Integer Linear Program (ILP) that meets the construction needs of Classic Construction and minimizes the cost of purchasing and shipping.
- Solve your formulation in Excel and report the optimal purchasing/shipping plan as well as the optimal cost. (Set Optimality Gap to .1%)
Related Book For
Quantitative Analysis for Management
ISBN: 978-0132149112
11th Edition
Authors: Barry render, Ralph m. stair, Michael e. Hanna
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