Question: Please solve the following transportation model problem. There are four warehouse locations supply goods to four destination markets. The cost parameters are provided in table
Please solve the following transportation model problem. There are four warehouse locations supply goods to four destination markets. The cost parameters are provided in table 1. The demand and supply expectations are provided in table 2 and 3.
| Destination Markets | ||||
| Warehouse | Columbus | St. Louis | Denver | Los Angeles |
| Indianapolis | 25 | 35 | 36 | 60 |
| Phoenix | 55 | 50 | 25 | 25 |
| New York | 40 | 50 | 80 | 90 |
| Atlanta | 30 | 40 | 66 | 75 |
| Qty. | |
| Columbus | 10 |
| St. Louis | 12 |
| Denver | 15 |
| Los Angeles | 9 |
| Total | 46 |
| Qty. | |
| Indianapolis | 15 |
| Phoenix | 6 |
| New York | 14 |
| Atlanta | 11 |
| Total | 46 |
Note: Dont mix demand with supply when adding constraints in Excel
Questions:
1.) What is the cost minimizing transportation quantities for each route? Please answer this question in table 4 below.
2.) The Los Angeles city government requested that the location be supplied by Atlanta warehouse at least 5 units during each planning period. The firm wants to honor the request as long as the request does not increase the total transportation cost by 10%. Should the request be honored? (Hint: you need to update the Solver solution after specifying the new constraint.)
3.) Table 4. Allocation of Shipping Quantity in Each Route Original Solution Only
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| Destination Markets | |||
| Warehouse | Columbus | St. Louis | Denver | Los Angeles |
| Indianapolis |
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| Phoenix |
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| New York |
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| Atlanta |
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| Answer Items: | Your Answer |
| Original Total Cost from Q1 |
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| Updated Total Cost if the Request is Honored |
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| Percentage Change in the Total Cost Over Q1 |
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| Decision to Accept or No |
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