Question: Could you create a spreadsheet model for the following information? this is to determine the optimal shipment routes by minimizing total cost.You have finally been
Could you create a spreadsheet model for the following information? this is to determine the optimal shipment routes by minimizing total cost.You have finally been promotedto Senior Manager for the nuts and bolts category at Locky Locke Inc., a manufacturer with a large demand for bolts at its three (3) factories. You have surveyed the market and found four (4) suppliers for a certain steady selling SKU, ZA27R46.Your factories' weekly demand for bolts are:Factory 1: 9,500 cases/weekFactory 2: 6,500 cases/weekFactory 3: 17,000 cases/weekEach of the four suppliers can provide the ZA27R46, but they differ in unit price, weekly capacity, and distance to Locky Locke Inc.three factories. The unit prices and the weekly capacity for each of the four suppliers are shown below:Supplier 1: U.S. Ainbolt - Unit cost: 2.50 $/case Capacity 9,500 cases/weekSupplier 2: Der Bolt, Thun - Unit cost: 3.20 $/case Capacity 10,000 cases/weekSupplier 3: Li Tningbolt - Unit cost: 1.90 $/case Capacity 7,000 cases/weekSupplier 4: M. Bolton - Unit cost: 2.80 $/case Capacity 9,000 cases/weekTransport Distance (miles)Factory 1Factory 2Factory 3U.S. Ainbolt120380806Der Bolt, Thun465717853Li Tningbolt553572830M. Bolton915406564You want to take a holistic view of bolt sourcing instead of having each factory select its supplier on its own. You decide to create a model to help you select the optimal sourcing assignment for all of the factories for the ZA27R46 bolts. Based on this optimization model, what is the total weekly cost for supplying bolts for Locky Locke Inc.? Be sure to include the purchase price as well as the transportation costs.
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