VOOM has four warehouses 1, 2,3, and 4. VOOM needs to supply 100 Tons to retailer P, 300 Tons to retailer Q, and 300 tons to retailer R. The cost of delivery from each warehouse to retailers is provided in the following table. While each of the warehouses has an inventory of 400 tons they can supply, R requires that every warehouse supplies at least 25 tons to R.
There is a special arrangement between Warehouse 4 and R which requires that Warehouse 4 has to supply exactly 100 tons to R. On the other hand, P cannot take more than 50 tons from warehouse 1 and 2.
Use linear programming to provide VOOM a plan that will keep their transportation cost to the minimum.
We will use Excel- Solver to solution for this problem. Below screenshots shows detailed approach
Optimal solution to minimize transport cost
Units supplied from Warehouse to retailer | P | Q | R |
Warehouse 1 | 0 | 0 | 25 |
Warehouse 2 | 0 | 0 | 25 |
Warehouse 3 | 100 | 0 | 150 |
Warehouse 4 | 0 | 300 | 100 |
Minimum total transportation cost is
$ 13,925.00 |
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VOOM has four warehouses 1, 2,3, and 4. VOOM needs to supply 100 Tons to retailer...
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