Question: NEXT, WE WILL EXAMINE A VERY USEFUL TOOL THAT UTILIZES A QUANTITATIVE METHODOLOGY THE TRANSPORTATION PROBLEM. EVEN IF WE CAN MANUFACTURE OUR TABLES AND CHAIRS

NEXT, WE WILL EXAMINE A VERY USEFUL TOOL THAT UTILIZES A QUANTITATIVE METHODOLOGY THE TRANSPORTATION PROBLEM. EVEN IF WE CAN MANUFACTURE OUR TABLES AND CHAIRS (GIVEN OUR CONSTRAINTS) HOW DO WE DEICDE IN WHAT PRIORITY TO SHIP THEM TO OUR CUSTOMERS? SEE THE TRANSPORTATION MATRIX BELOW.

TO/FROM

DENVER

(DISTRIBUTION 1)

PHOENIX

(DISTRIBUTION 2)

DALLAS

(DISTRIBUTION 2)

SANTA FE NM

5

6

4

300

ALBUQUERQUE NM

6

3

7

500

DEMAND

300

400

250

5. PLESE CONSTRUCT A DISTRIBUTION NETWORK MODEL FOR THIS SCENARIO (YOU CAN DRAW THIS IF IT IS EASIER)

6. PLEASE DEFINE YOUR DECISION VARIABLES

7. WHAT IS YOUR OBJECTIVE FUNCTION? AND YOUR CONSTRAINTS? (10 point)

Objective function:

Contraints :

Supply :

Demand :

Is Demand greater than supply?

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