Vizy is a fashion wear manufacturer. They manufacture the products in factories in Asia and Europe (and
Question:
Vizy is a fashion wear manufacturer. They manufacture the products in factories in Asia and Europe (and ship to the port of Los Angeles and Savannah, respectively). The products are then shipped to five regional warehouses located in Atlanta, Chicago, Dallas, Los Angeles, and New Jersey. The transportation cost to each regional warehouse from each production facility is given in the table below. The demand in each region and capacity of the production facilities are also shown in the table:
Transportation cost per unit ($) | Annual Capacity (units) | |||||
Regional Warehouse | ||||||
Production Facility | Atlanta | Chicago | Dallas | Los Angeles New Jersey | ||
Asia | 5.45 | 4.95 | 5.15 | 3.80 | 6.00 | 50,000 |
Europe | 4.00 | 5.10 | 4.75 | 6.50 | 4.35 | 40,000 |
Annual Demand (units) | 15,000 | 20,000 | 10,000 | 25,000 | 20,000 |
Vizy wants to develop a transportation plan (showing how many units should be shipped from each production facility to each regional warehouse) to minimize transportation costs while meeting the demand of each region.
a. What are the variables and what is the objective function for this problem?
b. What are the constraints for this problem?
c. Solve the problem using Excel Solver or LP Solve. What is the optimal transportation plan?
d. What is the total cost according to the solution?
Business Forecasting with Forecast X
ISBN: 978-0073373645
6th edition
Authors: Holton wilson, barry keating, john solutions inc