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
Formulate the above problem as a linear program. Clearly define the decision
variables, objective function, and constraints. General mathematical
expressions are not acceptable.
a Decision Variables:
b Objective Function:
c Constraints:
Solve the problem using Excel Solver. Provide screen shots of the solver
model and solution in Excel. Clearly identify the optimal shipping plan and
total cost.
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