Question: this is business analytics question i need help with question #2. need a mathematical model which utilizes all 5 aspects of parameter, decisions variables, constraints,

this is business analytics question i need help

this is business analytics question i need help

this is business analytics question i need help with question #2. need a mathematical model which utilizes all 5 aspects of parameter, decisions variables, constraints, objective function and optimization mode.

Problem 1 The Makonsel Company is a fully integrated company that both produces goods and sells them at its retail outlets. After production, the goods are stored in the company's two warehouses until needed by the retail outlets. Trucks are used to transport the goods from the two plants to the warehouses, and then from the warehouses to the three retail outlets. Using units of full truckloads, the first table below shows each plant's monthly output, its shipping cost per truckload sent to each warehouse, and the maximum amount that it can ship per month to each warehouse. For each retail outlet (RO), the second table below shows its monthly demand, its shipping cost per truckload from each warehouse, and the maximum amount that can be shipped per month from each warehouse. Management now wants to determine a distribution plan (number of truckloads shipped per month from each plant to each warehouse and from each warehouse to each retail outlet) that will minimize the total shipping cost. Please do the following (credit for each part of this problem is assigned at the end of each bullet)'. 1. Draw a network that depicts the company's distribution network. Identify the supply nodes, transshipment nodes, and demand nodes in this network. Include the data shown in the two tables below (25 points). 2. Formulate a mathematical model for this problem utilizing the 5-steps process discussed in class (50 points). 3. Solve this problem utilizing Excel solver and provide the management the appropriate recommendations and expected cost (25 points). 4. (Bonus question) Briefly discuss the implications of the solution of this problem un- der a sustainable operations approach. Specifically, discuss how these decisions would have the following impact either to the inside or the outside of the organization (5 bonus points): a) economical impact b) environmental impact c) social impact Unit shipping Cost Shipping Capacity Warehouse 1 Warehouse 2 Output From To Warehouse 1 Warehouse 2 125 150 200 $425 $560 Plant 1 $600 175 200 350 $510 Plant 2 Unit shipping Cost Shipping Capacity From To RO 1 RO 2 RO 3 RO1 RO2 RO 3 100 100 150 $490 Warehouse 1 $470 $505 125 150 75 $440 Warehouse 2 $390 $410 200 150 Demand 150 150 200 150

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