Question: Reconsider Problem 6.5. Suppose now that, for administrative convenience, management has decided that all 130 units per month needed at the distribution center in Los
Reconsider Problem 6.5. Suppose now that, for administrative convenience, management has decided that all 130 units per month needed at the distribution center in Los Angeles must come from the Stuttgart factory (node ST) and all 50 units per month needed at the distribution center in Seattle must come from the Berlin factory (node BE). For each of these distribution centers, Karl Schmidt wants to determine the shipping plan that will minimize the total shipping cost.
a. For the distribution center in Los Angeles, formulate a network model for this problem as a minimum-cost flow problem by inserting all the necessary data into the distribution network shown in Figure 6.6. (Use the format depicted in Figure 6.3 to display these data.)
FIGURE 6.3: A network model for the Distribution Unlimited Co. problem as a minimum-cost flow problem.
![[-60] [80] $700 Wi F1 $300 $200 [0] DC $400 [50] $500 $1,000 W2 F2 [-90] [70] los [os) [50]](https://dsd5zvtm8ll6.cloudfront.net/si.question.images/image/images15/1336-M-S-L-P(1662)-1.png)
FIGURE 6.6: The BMZ Co. distribution network from its main factory in Stuttgart, Germany, to a distribution center in Los Angeles.
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b. Formulate and solve a spreadsheet model for the problem formulated in part a.
c. For the distribution center in Seattle, draw its distribution network emanating from the Berlin factory at node BE.
d. Repeat part a for the distribution center in Seattle by using the network drawn in part c.
e. Formulate and solve a spreadsheet model for the problem formulated in part d.
f. Add the total shipping costs obtained in parts b and e. Compare this sum with the total shipping cost obtained in part c of Problem 6.5 (as given in the back of the book).
[-60] [80] $700 Wi F1 $300 $200 [0] DC $400 [50] $500 $1,000 W2 F2 [-90] [70] los [os) [50] RO ) Rotterdam 160 unis max) 40 units max BO [50 units max New York NY N0 units m) New Orleans ST Stuttgart 70 units max.] Bordeaux 40 units max. LA NO b0 mits [50 units max. LI Lisbon Lan Angeles max.) [30 units max
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