This is from QSO 320 Management Science through Spreadsheet class. The spreadshe

Question

This is from QSO 320 Management Science through Spreadsheet class. The spreadsheet with green fields is the question from the book. The problem consist of P5- 13 a and b. I attempted A. Per the note in red is this correct? I need complete help with the second spreadsheet Problem 5-13 (Transsipment). thank you

2. 5-13 Marc Hernandez's construction firm currently has three projects in progress. Each requires a specific supply of gravel. There are three gravel pits available to provide for Hernandez's needs, but shipping costs differ from location to location. The following table summarizes the transportation costs: To From Job 1 Job 2 Job 3 Central pit Rock pit Acme pit Tonnage Allowance 3,000 4,000 $ 8 $ 7 $7 $11 $6 3 $12 6,000 Job requirements (tons) 2,500 3,750 4,850 a. Determine Hernandez's optimal shipping quantities so as to minimize total transportation costs. b. It is the case that Rock Pit and Central Pit can send gravel by rail to Acme for $1 per ton. Once the gravel is relocated it can be trucked to the jobs. Reformulate this problem to determine how shipping by rail could reduce the transportation costs for the gravel

Explanation / Answer

Marc Hernandez Constructions:

Thus the Minimum Transportation Cost for Marc Hernandez Construction is $100750 and the optimal quantities are as above.

b.) On using the Transhipment Data:

Thus the Optimum Transportation Costs are approximately $86450 on using the Transhipment from Central and Rock Pit to Acme by Rail and transportation again to Jobs. Thus the cost actually reduces in this particular problem.

Costs Per Unit: To From/To Job1 Job 2 Job 3 Tonnage Allowance Central Pit 9 8 7 3000 Rock Pit 7 11 6 4000 Acme Pit 4 3 12 6000 Tonnage Demand 2500 3750 4850 Volume To From/To Job1 Job 2 Job 3 Volume Supply Tonnage Allowance Central Pit 400 2600 0 3000 3000 Rock Pit 2100 0 0 2100 4000 Acme Pit 0 1150 4850 6000 6000 Volume Demand 2500 3750 4850 Tonnage Demand 2500 3750 4850 Total Transportation 100750

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