Question: Question 4) (25 points) Consider a transportation problem. There are a set of suppliers and a set of customers in a region. The customers have

Question 4) (25 points) Consider a transportationQuestion 4) (25 points) Consider a transportation

Question 4) (25 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, i.e., 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. Suppliers Customers Demand Supply Capacity 1 550 A 400 2 600 B B 250 3 950 350 4 900 D 450 5 700 E 400 6 650 F 450 G 300 A shipping cost is charged for shipping each unit of item from a supplier to a customer. The cost information is summarized below. According to this cost matrix, for example to ship 100 units of the item from supplier 2 to customer B, a shipping cost of is charged. The goal is to minimize the total transportation costs. Cost Matrix From/To A B D E F F G 1 10 2 10 5 10 3 10 N 9 4 5 4 3 4 6 3 3 LO 3 5 1 8 8 8 2 2 7 8 9 7 4 N 5 3 6 4 7 3 N 10 6 OO 8 2 2 4 10 8 4 1. How many items should be shipped from each supplier to each customer to minimize the total transportation costs? Formulate a mathematical model for this problem and use Excel to solve the problem. 2- What is the excess capacity of supplier 2 in the optimal solution

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!