Nowak Gravel Company received a contract to supply gravel for three new road projects located in the towns A, B, and C. Construction engineers have estimated the amount of gravel which will be needed at three road construction projects (tab. 1). Nowak Gravel Company has three gravel plants located in the towns of X, Y, and Z. The gravel required for construction projects can be supplied by these three plants. The company chief dispatcher has calculated the amounts of gravel which can be supplied by each plant (tab. 2). The company also has computed the delivery costs from each plant to each project site. Delivery costs per truckload between each plant and project site vary directly with the quantity distributed (tab. 3). Given the amounts required at each project and the amounts available at each plant, the company problem is to schedule shipments from each plant to each project in such a way as to minimize the total transportation cost within the constraints imposed by plant capacities and project requirements. The tool: Excel.

Table 1.  Projects                                                                                          Table 2. Plants                                                                                                Table 3. Cost

Project	Weekly requirements, truckloads
A	72
B	102
C	41

 

Plant	Weekly amount available, truckloads
X	56
Y	82
Z	77

 

From	Cost per truckload
	To A	To B	To C
Plant X	4	8	8
Plant Y	16	24	16
Plant Z	8	16	24

  

Answer rating: 100% (QA)

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