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Suppose a CWTR supplier is shipping a component part from two plants: St. Louis and Richmond to two assembly locations in Palo Alto and Fargo. Route shipping costs are known and given in the table below. The supplier will ship as many parts as demanded as long as there is capacity at the plants to meet this demand. Demand and capacity are also known. Formulate an LP model for this problem where the goal is to minimize shipping costs while meeting demand. All shipping costs, demand and capacity constraints are for whole parts.
Destinations
Palo Alto Fargo Production Capacity
St. Louis $60 $30 10 parts
Richmond $40 $10 20 parts
Plant Demand 15 parts 5 parts
Note: unbalanced transportation model.
å supply = 10 +20 = 30, å demand = 15 + 5 = 20
Since, å supply > å demand , use “<=” for supply constraints.
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