Question

ABC soft drink manufacturing company produces soda bottles at three plants: Orlando, Tampa, and Miami. They ship them to major distribution centers in Charlotte. Birmingham, and Tallahassee. The accounting, production, and marketing departments have provided the information in the table below, which shows the unit cost of shipping between any plant and distribution center, plant capacities over the next planning period, and distribution center demands. ABC's supply chain manager faces the problem of determining how much to ship between each plant and distribution center to minimize the total transportation cost, not exceed available capacity, and meet customer demand. Assume Xij = amount shipped from plant i to distribution center j, where i = 1 represents Orlando, i = 2 represents Tampa, j = 1 represents Charlotte, and so on. Transportation Model Data Distribution Center Charlotte 4 3 Plant Orlando Tampa Miami Demand 7 Birmingham Tallahassee Capacity 7 14,000 4 25,000 6 6 23,000 19,000 22,000 6 3 18,000 A. GO

Answer 1

Total cost Using given data: Xij represents allocation made to ith row & jth column El Xijx per unit cost) Objective is to minimize total cost. becomes :- Minimize cost 4 X1, + 3x,2+ 7X13+ 7 X21+ 6X22+ 4X23+ 3X3, + 6x32 It + 6X33 6