Question: A Transportation Problem Using optimization tools such as Solver in Excel allows you to conduct prescriptive analytics. The following case is a version of the

A Transportation Problem Using optimization tools such as Solver in Excel allows you to conduct prescriptive analytics. The following case is a version of the transportation problem. Your company has a goal of delivering enough product to each of your retail outlets to exactly meet the predicted demand (Table 1) in the most cost-effective way possible. In order to ensure product availability, the purchasing manager has signed several contracts with various plants or distribution centers that need to be fulfilled and has obtained an agreement to be able to pull some additional product from each plant although each plant has a maximum that can be obtained (Table 2). You are tasked to minimize the cost while fulfilling the retail outlets demand need and pulling the minimum product ordered per plant while not exceeding the maximum available. Table 1 Retail Outlet Cost by Plant and Estimated Demand Estimated Demand AN Table 1 Retail Outlet Cost by Plant and Estimated Demand Retail Cost Cost Cost Outlet Plant 1 Plant 2 Plant 31171991011920121441017165191319618141771711108102020981771082071119201612820813178914819101581211161014201720178181610191918810201220 Cost Plant 48181177816137141081811101612101310 Cost Plant 51612131997151616132016141615191513819 Cost Plant 61220127151210171016147199197111117821015020017021018019018016017021019030012018014012016019012011 Table 2 Minimum and Maximum Product by Plant Plant Min Product 12344005003003506502002,400 Maximum Product 7001,0008007501,000500564,750
 A Transportation Problem Using optimization tools such as Solver in Excel

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