Problem regarding the transportation system

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Reference no: EM13962625

Transportation System

A company which manufactures product in five plants ships locally using its own transportation system, but has orders which must be sent to locations too far to be serviced by the local fleet.  It therefore contracts with a middle distance carrier to complete its shipping.  The locations of the manufacturing plants and the amount of product available to be shipped per week are show in the chart below.

Manufacturing Locations

Units Available per Week

Columbia

450

Macon

370

Huntsville

550

Greensboro

290

Knoxville

360

Total Available

2020

The seven locations and their weekly demand are shown in the chart below.

Destination Cities

Weekly Demand

Norfolk

305

Charleston

253

Gainesville

328

Mobile

225

Memphis

420

Louisville

158

Roanoke

210

Total Available

1899

Shipping costs per unit (in dollars) between plants and the destination cities are as follows:

Shipping Costs

Norfolk

Charleston

Gainesville

Mobile

Memphis

Louisville

Roanoke

Columbia

27

13

31

42

48

51

44

Macon

42

27

19

23

18

36

43

Huntsville

42

31

23

16

20

39

36

Greensboro

28

25

36

48

37

32

17

Knoxville

47

31

43

39

16

14

34

The transportation company wants to identify its optimal shipping plan that will satisfy demand at the lowest aggregate shipping cost.

Questions:

  1. What is the transportation company trying to optimize? Are they trying to maximize or minimize?
  2. Write the objective function to support this analysis.
  3. What inputs do you need to support your analysis?
  4. Is there any extraneous data you have been given that you will not need?
  5. What criteria has the transportation company given you to support the analysis?
  6. Create a spreadsheet model that supports your analysis.
  7. How would you change your model if one of the locations was temporarily unavailable due to severe weather conditions? On a separate sheet in your Excel file, show how you might do this.

Reference no: EM13962625

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