Question: Answer Using Excel Solver Tool and Show Solver Tool Window: Windy City Company makes cardboards in three factories (A, B and C). Then the company
Answer Using Excel Solver Tool and Show Solver Tool Window:
| Windy City Company makes cardboards in three factories (A, B and C). | ||||||||||
| Then the company ships the products to two distribution centers (C1 and C2). Then from the distribution centers to five warehouses (W1, W2, W3, W4 and W5) | ||||||||||
| The distribution centers have no limits on demand and capacity. | ||||||||||
| However, warehouses have demand limits such as: | ||||||||||
| W1 must meet a demand of 1250 | >= | |||||||||
| W2 must meet a demand of 1000 | >= | |||||||||
| W3 must meet a demand of 1600 | >= | |||||||||
| W4 must meet a demand of 1750 | >= | |||||||||
| W5 must meet a demand of 1500 | >= | |||||||||
| The factories have capacity limits such as: | ||||||||||
| A should not exceed 2400 | <= | |||||||||
| B should not exceed 2750 | <= | |||||||||
| C should not exceed 2500 | <= | |||||||||
| The unit cost to ship from the factories to the distribution centers are as follow: | ||||||||||
| A to C1: $1.36 | B to C1: $1.28 | C to C1: $1.68 | ||||||||
| A to C2: $1.28 | B to C2: $1.35 | C to C2: $1.55 | ||||||||
| The unit cost to ship from the distribution centers to the warehouses are as follow: | ||||||||||
| C1 to W1: $0.60 | C2 to W1: $0.80 | |||||||||
| C1 to W2: $0.36 | C2 to W2: $0.56 | |||||||||
| C1 to W3: $0.32 | C2 to W3: $0.42 | |||||||||
| C1 to W4: $0.44 | C2 to W4: $0.40 | |||||||||
| C1 to W5: $0.72 | C2 to W5: $0.55 | |||||||||
| Your tasks are to formulate the problem so that it can be solved by Solver. Thus, you need to: | ||||||||||
| 1. Specify and formulate the Changing Cells (use yellow color to indicate the changing cells) | ||||||||||
| 2. Specify and formulate the Target Cell (use a light blue color to indicate the target cell) | ||||||||||
| 3. Specify and formulate the Constraints. | ||||||||||
| 4. Solve this problem with the Solver and determine what is the minimum cost and how many | ||||||||||
| units will be shipped from factories to distribution centers, and from distribution centers to warehouses. | ||||||||||
| Hint: | ||||||||||
| Think of this problem as consisting of two stages. Stage1: from factories to distribution centers. Stage2: from distribution centers to warehouse. | ||||||||||
| Calculate the cost for each stage then the total cost for all stages | ||||||||||
| The total units shipped to each distribution center should be equal to the total units shipped out from each distribution center | ||||||||||
| Stage1 | TO | |||||||||
| C1 | C2 | Capacity | ||||||||
| FROM | A | $ 1.36 | $ 1.28 | 2400 | ||||||
| B | $ 1.28 | $ 1.35 | 2750 | |||||||
| C | $ 1.68 | $ 1.55 | 2500 | |||||||
| Stage2 | FROM | |||||||||
| C1 | C2 | Demand | ||||||||
| TO | W1 | $ 0.60 | $ 0.80 | 1250 | ||||||
| W2 | $ 0.36 | $ 0.56 | 1000 | |||||||
| W3 | $ 0.32 | $ 0.42 | 1600 | |||||||
| W4 | $ 0.44 | $ 0.40 | 1750 | |||||||
| W5 | $ 0.72 | $ 0.55 | 1500 | |||||||
| You can start writing your answer below this row. | ||||||||||
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