Question: 2. The M&Com Company has two plants producing Computed Tomography (CT) machines that then are shipped to three distribution centers. The production costs are the
2. The M&Com Company has two plants producing Computed Tomography (CT) machines that then are shipped to three distribution centers. The production costs are the same at the two plants, and the cost of shipping for each CT-machine is shown for each combination of plant and distribution center:
|
| Distribution Center |
| ||
| 1 | 2 | 3 | ||
| Plant | A | $800 | $700 | $400 |
| B | $600 | $800 | $500 | |
Each plant can produce and ship any amount of up to a maximum of 50 CT-machines per week, so there is considerable flexibility on how to divide the total production between the two plants so as to reduce shipping costs. However, each distribution center must receive exactly 20 CT-machines per week.
Management's objective is to determine how many CT-machines should be produced at each plant, and then what the overall shipping pattern should be to minimize total shipping cost.
(a) Formulate this problem as a transportation problem by constructing the appropriate parameter table.
(b) Use Excel Solver to obtain an optimal solution. Also use Pyomo to solve the problem.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
