HarryTech Corporation is a global distributor of electrical parts and components. Its customers are electronics companies in
Question:
HarryTech Corporation is a global distributor of electrical parts and components. Its customers are electronics companies in the United States, including computer manufacturers and audio/visual product manufacturers. The company contracts to purchase components and parts from manufacturers in Russia, Eastern and Western Europe, and the Mediterranean, and it has them delivered to warehouses in three European ports, Gdansk, Hamburg and Libson. The various components and parts are loaded into containers based on demand from U.S. customers. Each port has limited fixed number of containers available each month. The containers are then shipped overseas by container ships to the ports of Norfolk, Jacksonville, New Orleans, and Galveston. From these seaports the containers are typically coupled with trucks and hauled to inland ports in Front Royal (Virginia), Kansas City and Dallas. There are a fixed number of freight haulers available at each port each month. These inland ports are sometimes called “freight villagers,” or intermodal junctions ,where the containers are collected and transferred from one transport mode to another (i.e., from truck to rail or vice-versa). From the inland ports, the containers are transported to HarryTech’s distribution centers in Tucson, Pittsburgh, Denver, Nashville and Cleveland. Following are the handling and shipping costs ($/container) between each of the embarkation and destination points along this overseas supply chain and the available containers at each port:
European Port | U.S. Port | Available Containers | |||
4. Norfolk | 5. Jacksonville | 6. New Orleans | 7. Galveston | ||
| $1725 | 1800 | 2345 | 2700 | 125 |
| 1825 | 1750 | 1945 | 2320 | 210 |
| 2060 | 2175 | 2050 | 2475 | 160 |
U.S. Port | Inland Port | Intermodal Capacity (containers) | ||
8. Dallas | 9. Kansas City | 10. Front Royal | ||
4. Norfolk | $825 | 545 | 320 | 85 |
5. Jacksonville | 750 | 675 | 450 | 110 |
6. New Orleans | 325 | 605 | 690 | 100 |
7. Galveston | 270 | 510 | 1050 | 130 |
Intermodal Capacity(containers) | 170 | 240 | 140 |
Inland Port | Distribution Center | ||||
11. Tucson | 12. Denver | 13. Pittsburgh | 14. Nashville | 15. Cleveland | |
8. Dallas | $450 | 830 | 565 | 420 | 960 |
9. Kansas City | 880 | 520 | 450 | 380 | 660 |
10. Front Royal | 1350 | 390 | 1200 | 450 | 310 |
Demand | 85 | 60 | 105 | 50 | 120 |
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.
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair