GoClean&Co (GCC) hired you as its Logistics Manager in charge of transshipments. GoClean&Co is a joint public-private energy company dedicated to generating clean and safe nuclear energy. GCC uses a new technology based on radioactive pellets. These pellets can generate electricity for years in GCC's nuclear plants. Once the radioactive pellets are depleted, they are removed from active use and collected at the plants for removal at the end of the month. Once a month, the depleted pellets are removed from the plants, transported to an inspection site for examination, and then moved again to a dedicated storage site for safekeeping.

You have been informed that two of GCC's nuclear plants, called Plant One and Plant Two, need to move out depleted pellets in the following amounts:

• Plant One wants to ship out up to 280 pellets per month
• Plant Two wants to ship out up to 360 pellets per month

This is how many pellets these two plants want to ship out per month. However, the exact number of pellets that will actually be moved out from each plant depends on the space that is available at the dedicated storage sites that would ultimately receive them. GCC is mandated by law to move as many pellets out of the plants as the storage sites are able to receive. You have been informed that two of GCC's dedicated storage sites, called Storage X and Storage Y, are ready to receive depleted pellets from GCC's plants, in the following amounts:

• Storage X is ready to receive a total of 305 pellets per month
• Storage Y is ready to receive a total of 325 pellets per month

Since the two plants want to ship out more pellets per month than the two storage sites can receive, you know that some pellets will have to stay in their plant of origin until a later time. This is not a problem, however, since every one of GCC's plants has the capacity to temporarily store whatever pellets are not shipped out, and the law allows this.

At this time, only one inspection site is available to receive the pellets from the two plants, inspect them, and send them out to the two storage sites. It is called Inspection Site A. Notice that inspection sites do not have storage capacity: the pellets come in, are inspected, and continue their trip to the storage sites.

Moving radioactive material is not easy and therefore it is not cheap either. There is a lot of planning and security involved. Each shipment of pellets has to be closely monitored and protected to prevent the loss of radioactive material. Also, the vehicles transporting the material have to move relatively slowly, to avoid accidents. Therefore, it is very expensive to transport the radioactive pellets from the plant to the inspection site, and from there to the storage site. Based on estimates and historical data, GCC has calculated the following transportation costs, in dollars per pellet moved:

• It costs 13.58 dollars to move one pellet from Plant One to Inspection Site A
• It costs 16.54 dollars to move one pellet from Plant Two to Inspection Site A
• It costs 7.57 dollars to move one pellet from Inspection Site A to Storage X
• It costs 16.46 dollars to move one pellet from Inspection Site A to Storage Y

question:

GCC has calculated the following transportation costs for Inspection Site B, in dollars per pellet moved:

• It costs 12.6 dollars to move one pellet from Plant One to Inspection Site B
• It costs 16.2 dollars to move one pellet from Plant Two to Inspection Site B
• It costs 9.45 dollars to move one pellet from Inspection Site B to Storage X
• It costs 15.64 dollars to move one pellet from Inspection Site B to Storage Y

As before, you will optimize the transhipment of depleted pellets from the plants to the storage sites, stopping first at the inspection sites, so as to minimize the overall monthly transportation cost. How much will this cost GCC every month? .

Give your answer in dollars, without typing in the box a dollar sign or comma. For example, if your answer is $1,234, type 1234 in the box. Hint: In this optimal solution, Plant Two ships a total of 45 pellets per month to Inspection Site B.

Answer rating: 100% (QA)

Lets calculate the total transportation cost for each scenario For Plant One Transportation cost to ... View the full answer