Set up solver to determine how many truckloads of sod to ship
from each farm to...
John Appleton owns a sod company based in Pocatello, Idaho. He sells his sod by thetruckload to 11 different nurseries across Southern Idaho from Payette to Idaho Falls. Hiscompany started with a sod farm in Pocatello. He soon began selling enough sod in the western part of the state that hedecided to buy a larger sod farm near Boise. Currently, the Pocatello farm produces 800 truckloads of sod a year. The Boise farm produces 1000 truckloads a year. This is not enough to keep up with thedemand for sod from the nurseries, who could sell nearly 3000 truckloads ofsod. Because the nurseries prefer John's sod to their alternative suppliers, John has agreed to supply at least 10 truckloads of sod to each nursery each year. It is difficult for John to manage shipments to the nurseries from his farms. Heconstantly worries that his shipping costs are higher than they should be. Use Solver and the shipping model on the Sod worksheet to determinehow many truckloads of sod he should ship to each nursery from each farm in order to minimize his overall shipping costs. As part ofyour analysis, make sure that you 1)ship all of the sod available at each farm without exceeding what is available, 2) do not ship a partial truckload of sod 3) do not ship morethan the demand for sod to any nur and 4) ship at least 10 total truckloads of sod to each nur 10 Model Inputs Shipping Decision 12 13 14 Shipping Costs per Truckload Truckloads shipped Pocatello Pocatello $100 $526 $210 $566 $154 $434 $556 $634 Demanded 70 1200 40 210 260 50 Blackfoot $560 $60 $370 $104 $614 $144 $94 $172 $526 Blackfoot Burley Caldwell Idaho Falls Mountain Home Nampa Payette Pocatello Sun Valley Twin Falls Burley Caldwell Idaho Falls Mountain Home Nampa Payette Pocatello Sun Valley Twin Fall:s 16 17 18 19 21 250 $384 $276 23 24 25 26 27 28 200 Shipments Available 1000 800 Calculations Total Shipping Costs Farm Pocatello Shipments Made Farm Shipping Cost $0 $0 Boise 31 32 Boise Pocatello Overall Cost Pocatello 35 Sod