ABC Ltd buys 15 used trucks at each of two truck auctions each week held at different
Question:
ABC Ltd buys 15 used trucks at each of two truck auctions each week held at different locations. It then transports the trucks to repair shops it contracts with. When they are restored to ABC's specifications, ABC sells 10 each to three different used truck lots. There are various costs associated with the average purchase and transportation prices from each auction to each repair shop. Also there are transportation costs from the repair shops to the used truck lots. ABC is concerned with minimizing its total cost given the costs in the table below.
a. Given the costs below, draw a network representation for this problem (show all the data). | ||||||
| Repair Shops | Used Truck Lots |
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| S1 | S2 |
| L1 | L2 | L3 |
Auction 1 | 550 | 500 | S1 | 250 | 300 | 500 |
Auction 2 | 600 | 450 | S2 | 350 | 650 | 450 |
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b. Formulate this problem as a linear programming model. Define the decision variables Formulate the objective function Formulate the constraints
c. Use Excel's Solver to find the optimal solution to this problem. Report the total cost Interpret the optimal solution: how many trucks (if any) should be sent from each Auction to each Repair Shop and from Each Repair Shop to each Used Truck Lot? | ||||||
