Question: Q3 part 3INSTRUCTIONS: For the mathematical models either use Word Equations, or write down the formulas on a paper, take a photo you MUST upload
Q3 part 3INSTRUCTIONS: For the mathematical models either use Word Equations, or write down the formulas on a paper, take a photo you MUST upload the word file and an Excel Workbook. For the optimization problems, you must use the Excel solve

Question 3) (40 points) Consider a transportation problem. There are a set of suppliers and a set of customers in a region. The customers have their known demand of a specific product. Suppliers have supply capacities for the product. An operations manager wants to make shipment decisions, Le., how many items to ship from each supplier to each customer, subject to the demand requirements and supply capacities. The demand and supply information are presented below. Table1 Customer Supply Supplier 2 3 Capacity A 10 10 50 B 9 5 9 50 C 10 10 50 D 10 8 5 50 We want to determine a shipment plan to satisfy customer's demand in the month of April. We do not have demand information for April. But we have historical demand data for the previous 11 months for each of the customers. Table 2 Demand Period Month Customer 1 Customer 2 Customer 3 1 May 48 65 30 2 June 46 47 45 3 July 53 43 33 4 August 58 60 60 5 September 52 54 62 6 October 54 46 67 7 November 65 45 69 8 December 69 44 99 9 January 71 55 102 10 February 74 44 107 11 March 75 33 103 d) Use Excel solver to solve a transportation problem for the month of April based on cost and supply information of Table 1 and demand information of Table 5. (If you could not solve parts a, b, c, use demands of 60, 70, and 75 for customers 1, 2, and 3 respectively). You should make sure that demand of the customers is satisfied, and supply capacity of the suppliers is not violated. Can you solve this problem? What is the minimum transportation cost for this problem? What is the capacity utilization of supplier 3? Answer: Minimum transportation cost: Answer: Capacity utilization of supplier 3
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
