Question: Problem 3 ( 2 5 ) : A supply chain for ABC company consists of three plants, two intermediate warehouses, and three retail stores. Plant
Problem : A supply chain for ABC company consists of three plants, two
intermediate warehouses, and three retail stores. Plant capacities and shipping costs
per unit from each plant to each warehouse are listed in the following table.
Table : Shipping cost $unit Plant to Warehouse and Plant capacity
Shipping costs from each warehouse to each final destination retail store and
store demand are listed in the following table
Table : Shipping cost $unit Plant to Warehouse and Retail Store Demand
The operation manager wishes to determine the minimumcost shipping plan from
each plant to warehouse and from each warehouse to final retail store.
Develop a network diagram of the above problem. Label all arcs, nodes,
supply, and demand
Formulate the above problem as a linear program. Clearly define the decision
variables, objective function, and constraints. General mathematical
expressions are acceptable.
a Decision Variables:
b Objective Function:
c Constraints:
Solve the problem using Excel Solver. You must provide screen shots of the
solver model and solution in Excel to receive credit. Clearly identify the
optimal shipping plan and total cost.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
