Question: You are given the following model formulation for a trans-shipment problem. We have Plants, Warehouses, and Customers. Decision Variables: X15 = Units shipped from Plant

You are given the following model formulation for a trans-shipment problem. We have Plants, Warehouses, and Customers.

Decision Variables:

X15 =

Units shipped from

Plant 1 (1)

to

Warehouse 1 (5)

X16 =

Warehouse 2 (6)

X25 =

Plant 2 (2)

Warehouse 1 (5)

X26 =

Warehouse 2 (6)

X35 =

Plant 3 (3)

Warehouse 1 (5)

X36 =

Warehouse 2 (6)

X38 =

Customer 2 (8)

X45 =

Plant 4 (4)

Warehouse 1 (5)

X46 =

Warehouse 2 (6)

X57 =

Warehouse 1 (5)

Customer 1 (7)

X58 =

Customer 2 (8)

X59 =

Customer 3 (9)

X67 =

Warehouse 2 (6)

Customer 1 (7)

X68 =

Customer 2 (8)

X69 =

Customer 3 (9)

Objective Function:

Min: 8X15 + 10X16 + 12X25 + 13X26 + 14X35 + 15X36 + 12X38 + 12X45 + 8X46 + 12X57 + 10X58 + 8X59 + 12X67 + 13X68 + 15X69

Subject to:

C1 (Plant 1): 1X15 + 1X16 710

C2 (Plant 2): 1X25 + 1X26 820

C3 (Plant 3): 1X35 + 1X36 +1X38 920

C4 (Plant 4): 1X45 + 1X46 500

C5 (Whse 1): 1X15 + 1X25 + 1X35 + 1X45 1X57 1X58 1X59 = 0

C6 (Whse 2): 1X16 + 1X26 + 1X36 + 1X46 1X67 1X68 1X69 = 0

C7 (Node 7): 1X57 + 1X67 = 500

C8 (Node 8): 1X38 + 1X58 + 1X68 = 600

C9 (Node 9): 1X59 + 1X69 = 670

C10 (Non-neg.): X15 X69 0

Part a) What is the minimum cost shipping plan? Label your answer in your Excel spreadsheet as Total Shipping Cost.

Part b (5 Points) Use the Simplified Sensitivity Analysis handout and show your work to the right of your original spreadsheet as shown in all of the Chapter 3 Sensitivity Analysis examples. What will the objective function equal if the coefficient of X46 is now 7.80? Note: If all you do is revise your original model and re-run it, you will receive 0 points. You must perform sensitivity analysis in your spreadsheet. Answer the following questions in your spreadsheet:

How much is the Decrease?

What is the Allowable Decrease?

Is the Increase within the Allowable Decrease?

What is the new objective function value?

Part c (5 Points) Use the Simplified Sensitivity Analysis handout and show your work to the right of your original spreadsheet as shown in all of the Chapter 3 Sensitivity Analysis examples. What will the objective function equal if the coefficient of right-hand-side of Constraint 9 is now 655? Note: If all you do is revise your original model and re-run it, you will receive 0 points. You must perform sensitivity analysis in your spreadsheet. Answer the following questions in your spreadsheet:

How much is the Decrease?

What is the Allowable Decrease?

Is the Decrease within the Allowable Decrease?

What is the new objective function value?

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