Question

WK Qu. 3-13 A firm is attempting to minimize... 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) Customer 2 Customer 3 Factory/Capacity Customer 1 A/170 units B/130 units C/190 units Requirement-245 units Requirement-82 units Requirement-163 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 (S/unit) Customer 1 Customer 2 Customer 3 Factory What is the total cost of meeting customer requirements each day? Total cost

Answer 1

Supply From To А в 170 130 12 190 163 Requirement 245 Decision Variables Number of units to be shipped from each factory to each customer 1 From To А в Objective function Minimize the total cost 14 =SUMPRODUCT(B9:D11, B2:04) Constraints 16 =SUM(B9:09) 17 =SUM(B10:010) 18 =SUM(B11:011) 19 =SUM(B9:B11) 20 =SUM(C9:011) 21 =SUM(09:011)

1 2 B C D E From To Supply A 170 B 130 C | 12 12 Requirement 245 163 Decision Variables Number of units to be shipped from each factory to each customer From To 1 2 3 4 5 190 7 8 9 A B с Objective function Minimize the total cost Constraints 170 130 190 245 82 163

Solver Parameters Set Objective: $A$14 To: O Max Min value of: 0 By Changing Variable Cells: SBS9:$D$11 Subject to the Constraints: SA$16:$A$21 = $C$16:$C$21 $B$9:$D$11 >= 0 Add Change Delete Reset All Load/Save Make Unconstrained Variables Non-Negative Select a Solving Simplex LP Method: Options Solving Method Select the GRG Nonlinear engine for Solver Problems that are smooth nonlinear. Select the LP Simplex engine for linear Solver Problems, and select the Evolutionary engine for Solver problems that are non-smooth. Help Solve close

8 Decision Variables Number of units to be shipped from each factory to each customer FromTo 1 2 3 A 88 82 0 B 130 0 0 C 27 0 163 Objective function Minimize the total cost 4652 4 Cantante

Solution::

From|To	1	2	3
A	88	82	0
B	130	0	0
C	27	0	163

Total cost = 4652