DeMont Chemical Company manufactures fertilizer in three plants, referred to as P1, P2, and P3. The company
Question:
DeMont Chemical Company manufactures fertilizer in three plants, referred to as P1, P2, and P3. The company ships its products from plants to two central DCs, designated D1 and D2, and then to five regional warehouses, W1-W5. At the DCs, no demand occurs and no capacity limits exist. There are processing cost associated with each pound of fertilizer shipped to the warehouses. Demand is associated with the warehouses, and capacities exist at the plants. The system is described in two tables, one for each stage. The units for capacity and demand are pounds of fertilizer, and the unit costs are given per pound.
(From) Plant | (To) DC | Capacity | Production Cost | |
D1 | D2 | |||
P1 | $1.36 | $1.28 | 2400 | $32.00 |
P2 | $1.28 | $1.35 | 2750 | $34.50 |
P3 | $1.68 | $1.55 | 2500 | $29.40 |
(From) DC | (To) Warehouse | ||||
W1 | W2 | W3 | W4 | W5 | |
D1 | $0.60 | $0.36 | $0.32 | $0.44 | $0.72 |
D2 | $0.80 | $0.56 | $0.42 | $0.40 | $0.55 |
Requirement | 1250 | 1000 | 1600 | 1750 | 1500 |
Figure below shows the plants on the left side of the diagram, the warehouses on the right, and the DCs in the center. All material flows first from a plant to a DC and then from a DC to a warehouse.