Question: Because dealing with too many carriers can be a cumbersome, Offhaus would like to limit the number of carriers it uses to three. Also, for

Because dealing with too many carriers can be a cumbersome, Offhaus would like to limit the number of carriers it uses to three. Also, for customer relationship reasons Offhaus wants each city to be assigned to only one carrier (i.e., no splitting of the demand to a given city across carriers).
(a) Develop and solve a model that will yield the three selected carriers and the city-carrier assignments so as to minimize the cost of shipping. Choose the correct optimal solution.
(i)
Carrier 2: Assigned cities 1,3,4,5,6, and 9
Carrier 5: Assigned city 3
Carrier 7: Assigned city 7,8,and 10-20
(ii)
Carrier 2: Assigned cities 2,3,4,5,6, and 9
Carrier 5: Assigned cities 7,8,and 10-20
Carrier 6: Assigned city 1
Total Cost: $435,404 Total Cost: $436,512
(iii)
Carrier 5: Assigned cities 1,2,6,7,8 and 10-20
Carrier 6: Assigned cities 3,4, and 5
Carrier 7: Assigned city 9
(iv)
Carrier 1: Assigned cities 11and 12
Carrier 3: Assigned cities 13-20
Carrier 7: Assigned cities 1-10
Total Cost: $475,542 Total Cost: $385,519
- Select your answer -
(b) Offhaus is not sure if there is the correct number of carriers to select. Run the model you developed in part (a) for allowable carriers varying from one to seven. Based on results, how many carriers would you recommend?

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