Task $2$: Introduction to Optimization Modeling

$($Related to Learning Outcome $1$: Apply Business Analytics Tools$)$

A logistics company wants to minimize the cost of shipping goods between warehouses and retail stores. The company has data on shipping costs per unit, the supply available at each warehouse, and the demand at each retail store.

Data Set: Shipping Optimization

Warehouse

W$1$

W$1$

W$2$

W$2$

Retail Store

S$1$

S$2$

S$1$

S$2$

Shipping Cost per Unit $($$$)$

$5$

$7$

$4$

$6$

Supply $($Units$)$

$100$

$100$

$120$

$120$

Demand $($Units$)$

$70$

$80$

$90$

$100$

Question:

$1.$ Develop an optimization model to minimize the total shipping cost while meeting the demand at both retail stores.

$2.$ Use Excel Solver or another optimization tool to solve the model and provide the optimal shipping plan.