Distribution at hearts beats

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How was What-If analysis specifically have been used on this mini-case to help better understand underlying problem?

Distribution at Hearts Beats

Heart Beats is a manufacturer of medical equipment. The company’s primary product is a device used to monitor the heart during medical procedures. This device is produced in two factories and shipped to two warehouses. The product is then shipped on demand to four third-party wholesalers. All shipping is done by truck. The product distribution network is shown below. The annual production capacity at factories 1 and 2 is 400 and 250, respectively. The annual demand at wholesalers 1,2,3 and 4 is 200, 100, 150 and 200, respectively. The cost of shipping one unit in each shipping lane is shown on the arcs. Because of limited truck capacity, at most 250 units can be shipped from factory 1 to warehouse 1 each year. Formulate and solve a network optimization model in a spreadsheet to determine how to distribute the product at the lowest possible annual cost.

Reference no: EM13261814

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