You are into a new business of producing cowboy shoes. There are two factories (
ID: 1996170 • Letter: Y
Question
You are into a new business of producing cowboy shoes. There are two factories (A and B) where you produce shoes. The production limits are 500 units for factory A and 300 units for factory B.
You have three options for establishing warehouses (W1, W2, and W3) from where you have to distribute products to markets C and D (destinations). Capacity of warehouses are 350 units for W1, 450 units for W2, and 450 units for W3.
The demands at markets C and D are 400 units each.
The unit shipping cost from each source to each warehouse and from each warehouse to each market is given in tables below.
Your objective is to find the best shipping plan from factories to markets through warehouses while minimizing total shipping cost.
Major constraint is that you can only establish 2 warehouses out of 3. Minimizing the cost, select two warehouses only.
W3 W1 WW2 A 1 I Table: Unit cost from Sources to Warehouses WW1 w2 4 4 1 w3 Table: Unit cost from warehouse to C and D.Explanation / Answer
Place 350 units form Factory A into Warehouse W1 and 300 units from Factory B into Warehouse W2 and 150 units from Factory A into Warehouse W3.
Total cost for placing them into warehouses = (350*1)+(300*3)+(150*2)=1550.
Send 350 units from W1 to market D and remaining 50 from W3 to same Market i.e., D
Send 300 units from W2 to market C and remaining from W3 to same market i.e C
Total cost for sending them to the market = (350*1)+(50*1)+(300*2)+(100*4) =1400
Total Cost in moving them from Factory to both markets C and D is given as below:
Cost for sending them to warehouse+ Cost for sending them from Warehouse to the Market=1550+1400=2950.
This is the optimized cost required to send the Products to the markets C and D.
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