AutoSupply Corporation is a global distributor of automobile parts and components. Its customers are auto makers...

 

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AutoSupply Corporation is a global distributor of automobile parts and components. Its customers are auto makers in the United States. The company sources components and parts from manufacturers in Europe. Components and parts are first delivered to warehouses in three European ports: Genua, Hamburg, and Valencia, where the components and parts are loaded into containers based on demand from U.S. customers. Each port has a limited number of containers available each month (Please see Table 1). The containers are then shipped to overseas by container ships to the ports of Baltimore, Tampa bay, New Orleans, and Houston. European Port Available 1. Genua 2. Hamburg 3. Valencia Table 1: Shipping costs (S/container) From European Ports to U.S. Seaports U.S. Seaport Containers 4. Baltimore 5. Tampa bay 6. New Orleans 7. Houston 125 $1,725 $1,800 210 $1,825 $1,750 160 $2,060 $2,175 4. Baltimore 5. Tampa bay 6. New Orleans 7. Houston $2,345 $1,945 $2,050 From these U.S. seaports, the containers are coupled with trucks and hauled to inland ports in Oklahoma City, St. Louis, and Richmond. There are a fixed number of freight haulers available at each U.S. seaport each month (The available container capacities are shown in Table 2). U.S. Seaport Available Capacity (Containers) 85 110 100 130 $2,700 $2,320 $2,475 Table 2: Shipping costs (S/container) From U.S. Seaports to Inland Ports Inland Port 8. Oklahoma City 9. St. Louis 10. Richmond $825 $750 $325 $270 $545 $675 $605 $510 $320 $450 $690 $1,050 From the inland ports, the containers are transported to AutoSupply's distribution centers in Tucson, Denver, Pittsburgh, Atlanta, and Detroit. The available container capacity at each inland port, the shipping costs ($/container) between each inland port and distribution center, and the demand at each distribution center are shown in Table 3: Inland Port Available Capacity (Containers) 170 240 140 Table 3: Shipping costs ($/container) From Inland Ports to DCs Distribution Center 11. Tucson 12. Denver 13. Pittsburgh 14. Atlanta 15. Detroit $450 $565 $420 $880 $450 $380 $1,350 $1,200 $450 85 105 50 8. Oklahoma City 9. St. Louis 10. Richmond Demand at Distribution Centers Questions: a) Draw a network flow representation of this problem. b) Formulate a Linear Programming model to determine the optimal shipments from each point of embarkation to each destination along this supply chain that will result in the minimum total shipping cost. c) Create a spreadsheet model for this problem and solve it using Solver. $830 $520 $390 60 $960 $660 $310 120 AutoSupply Corporation is a global distributor of automobile parts and components. Its customers are auto makers in the United States. The company sources components and parts from manufacturers in Europe. Components and parts are first delivered to warehouses in three European ports: Genua, Hamburg, and Valencia, where the components and parts are loaded into containers based on demand from U.S. customers. Each port has a limited number of containers available each month (Please see Table 1). The containers are then shipped to overseas by container ships to the ports of Baltimore, Tampa bay, New Orleans, and Houston. European Port Available 1. Genua 2. Hamburg 3. Valencia Table 1: Shipping costs (S/container) From European Ports to U.S. Seaports U.S. Seaport Containers 4. Baltimore 5. Tampa bay 6. New Orleans 7. Houston 125 $1,725 $1,800 210 $1,825 $1,750 160 $2,060 $2,175 4. Baltimore 5. Tampa bay 6. New Orleans 7. Houston $2,345 $1,945 $2,050 From these U.S. seaports, the containers are coupled with trucks and hauled to inland ports in Oklahoma City, St. Louis, and Richmond. There are a fixed number of freight haulers available at each U.S. seaport each month (The available container capacities are shown in Table 2). U.S. Seaport Available Capacity (Containers) 85 110 100 130 $2,700 $2,320 $2,475 Table 2: Shipping costs (S/container) From U.S. Seaports to Inland Ports Inland Port 8. Oklahoma City 9. St. Louis 10. Richmond $825 $750 $325 $270 $545 $675 $605 $510 $320 $450 $690 $1,050 From the inland ports, the containers are transported to AutoSupply's distribution centers in Tucson, Denver, Pittsburgh, Atlanta, and Detroit. The available container capacity at each inland port, the shipping costs ($/container) between each inland port and distribution center, and the demand at each distribution center are shown in Table 3: Inland Port Available Capacity (Containers) 170 240 140 Table 3: Shipping costs ($/container) From Inland Ports to DCs Distribution Center 11. Tucson 12. Denver 13. Pittsburgh 14. Atlanta 15. Detroit $450 $565 $420 $880 $450 $380 $1,350 $1,200 $450 85 105 50 8. Oklahoma City 9. St. Louis 10. Richmond Demand at Distribution Centers Questions: a) Draw a network flow representation of this problem. b) Formulate a Linear Programming model to determine the optimal shipments from each point of embarkation to each destination along this supply chain that will result in the minimum total shipping cost. c) Create a spreadsheet model for this problem and solve it using Solver. $830 $520 $390 60 $960 $660 $310 120

Answer rating: 100% (QA)

Based on the problem considered the aim is to minimize the total shipping cost for distributing containers from European ports to US seaports then from US seaports to inland ports and finally to distr... View the full answer