Question: How do you set a linear programming to work out part A and B for the transhipment problem written in Lindo and Excel with Solver
How do you set a linear programming to work out part A and B for the transhipment problem written in Lindo and Excel with Solver formats? How do you create a Mixed Integer Linear Programming model for Part C to work out how much of the warehouse should be sublet in Edinburgh and which warehouse if any should be closed in Excel and Lindo format to minimise transportation cost or maximise sublet profit by following constraints and costs in part A
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Problem Description
A company has two factories, one each at Durham and Norwich. The factories produce paints which are sold to four wholesalers. The wholesalers are either supplied directly from the factories or through one of the company warehouses, the transportation costs being paid by the company. The company has three warehouses, one each in Reading, Sheffield, and Edinburgh. Table shows the transportation costs per ton for deliveries from the factories to the warehouses or wholesalers and also from the warehouses to the wholesalers, omitting entries when delivery from a certain supplier or warehouse is impossible for some destination.
tableSupplierWarehouse,WholesalerReadingSheffield,Edinburgh,DurhamNorwichReadingSheffieldEdinburgh
Table : Transportation costs in ston delivered.
The two factories at Durham and Norwich can produce up to and tons per week respectively. No more than and tons can be moved each week through the warehouse in Reading, Sheffield, and Edinburgh, respectively. Wholesalers and require and tons per week respectively.
Answer the following three parts of the problem.
A Formulate a linear programming model to determine the minimum cost transportation schedule. Clearly explain the variables you use and the constraints you construct. What is the minimum cost transportation schedule and what is the minimum transportation cost?
B Discuss the effect on the minimum transportation cost when capacity at each factory or warehouse is altered by adding or subtracting tonnes. What are the minimum capacity changes in both directions at Sheffield that will alter the optimum set of routes and what will those alterations be Explain how you arrive at each one of your answers.
C The management of the company is considering the possibility of closing down one of the warehouses as this is expected to result in substantial labour and maintenance savings. Further, the manager of the Edinburgh warehouse is considering subletting some of the capacity of this warehouse. Such sublets would have to be in exact multiples of tons. It is estimated that each tons of capacity could be let for per week. Formulate a mixed integer linear programming model or if necessary, different model variants to examine and evaluate the alternative courses of action. What would you recommend the company to do and why? Discuss the alternatives, also considering the solution from part A and explain which additional information you might need if any to give the company more specific advice.
LP software to use for this assignment must be LINDO or Excel
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