Question

A firm is attempting to minimize its shipping costs. The firm has 3 factories and must supply the needs of its 3 customers without shortages. Since the firm has no storage facilities, each factory must make daily shipments to its customers. The table below shows the capacity of each factory, the amount required by each customer, and the cost of shipping from each factory to each customer Shipping Costs ($/unit) Factory/Capacity A/190 units Customer 1 Customer 2 Customer 3 10 10 B/180 units 11 12 9 C/140 units 6 12 Requirement-255 units Requirement-85 units Requirement-170 units Complete the table below to show the quantity shipped from each factory to each customer. (Leave no cells blank - be certain to enter "O" wherever required.) Shipping Costs ($/unit) Customer 2 Factory Customer 1 Customer 3 А В C What is the total cost of meeting customer requirements each day? Total cost

Answer 1

Answer. Total cost = $4295

1 Shipping Cost 10 A B Customer 1 Customer 2 Customer 3 10 11 12 6151 20 8 Allocation Customer 1 Customer 2 Customer 3 Total Constraint A 0 1701 190 190 B 1801 o 180 55 850 140 Total 85170 Constraint 255 85 170 180 140 255 16 Minimize total costui 4295 17

Set Objective SCS16 To: O Max O Min O Value of: By Changing Variable Cells: SCS10:SES12 Subject to the Constraints: SCS10: SE512 - integer SCS10:SE512 >= 0 $C$13:$E$13 = $C$14:$E$14 SF510 SF512 - SG$10:5G512 Add Change Delete Reset All Load/Save Make Unconstrained variables Non-Negative Select a Solving Method: GRG Nonlinear Options
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