Question

Using solver find out the solution to the the Philips Drug Company. This company has three warehouses, denoted by W1, W2, and W3. The first W1, is in Chicago, W2 is in Mississippi, and W3 is in New York. It sells primary to four major distributors: D1, D2, D3, and D4. Located in Washington, Ohio, Texas, and Canada, respectively. Due to the different modes of Transportation and the different distances involved, the costs of shipping a truckload of drugs from the different warehoused to the different markets vary, and they are given in the following table (the costs are on hundreds):

From/to	D1	D2	D3	D4
W1	22	36	24	23
W2	31	19	32	26
W3	25	25	16	22

This is, to ship a truckload of goods from warehouse W 1 to distributor D2 costs $3600. To ship a truckload of goods from warehouse W3 to distributor D4 costs $2200. Given that W1, W2, and W3 have respectively 20, 30 and 50 truckloads of drugs to be shipped and that D1, D2, D3, and D4 need respectively 20, 30, 30, and 20 truckloads of drugs. What is the cheapest way of shipping the drugs so as to meet all the demands?

***Use Microsoft Excel solver for this problem

Answer 1

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