Question: 235 GlobalFreight Ltd. is a world class freight forwarder which provides the highest standard of cargo delivery services, and it has seen the rapid increase

235 GlobalFreight Ltd. is a world class freight

235 GlobalFreight Ltd. is a world class freight forwarder which provides the highest standard of cargo delivery services, and it has seen the rapid increase of demanding in Asia in recent years. The manufacturing centers at Europe, East Asia and Austria branches assemble the cargo. Once orders are placed, the cargos shall be arranged through different hub cities to end customers. The hubs are chosen at various metropolitans near ports so that its cargoes are ready to be sent out in the first time. To fulfil the demands of Asia VIP customers (credential disclosed), e.g. customer A, customer B, and customer C, hub cities are chosen at Hong Kong, Sydney, and Yamaguchi. 4 The monthly production capacities of the manufacturing centers are listed in Table 1, as well as the unit shipping cost from manufacturing centers through hub cities. Table 2 shows the unit shipping cost from hub cities to VIP customers, where the last row shows the foreseen demand of the customers. Manufacturer - Hubs Cost Hong Kong Sydney Yamaguchi Maximum Capacity Europe 3.50 3.00 3.10 East Asia 2.40 2.30 2.20 325 Australia 2.60 2.60 2.40 Table 1. Unit shipping cost from manufacturing centers to hubs & capacity Hubs - Customers Cost Customers A Customer BCustomer C Hong Kong | 1.00 1.50 1.50 Kaoshiung 1.50 1.80 1.50 Singapore 2.00 1.50 1.40 Demand 200 100% le Table 2. Unit shipping cost from hubs to VIP customers & demand a) Formulate and solve a linear programming model to determine the transshipment arrangements a that will minimize the total shipping cost. (15 marks) b) [EXCEL] Solve the model using solver. (10 marks) 405 (] le 560 4

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