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Hello, Can you provide me a description of what should I write in the findings a

ID: 356718 • Letter: H

Question

Hello, Can you provide me a description of what should I write in the findings and interpretation as well as recommendations. I have the solution with me.

KO /users hain%20Modelling% 7%20181 09620A1 %20problem.pdf The company produces a potato product at three plants, which can be delivered directly to the two customers or it can first be shipped to the two warehouses and then to the customers. Shipments between plants are allowed. This also applies to between warehouses and between customers. The cost of producing the potato product is the same at each plant; as a result, the company is only concerned with minimising the total shipping cost incurred in meeting customer demands. The production capacity of each plant (in tons per year) and the customer demand are summarised in the table below: Customer Customer 1 Customer 2 Demand Plant Plant 1 Plant 2 Plant 3 200 200 350 220 The cost (in thousands of dollars) of shipping a ton of the product between each pair of locations is listed in the table below where a blank indicates that the company cannot ship on that route: To node Plant 1 Plant 2 Plant 3 Warehouse 1 Warehouse 2 Customer 1 Customer 2 From node Plant 1 Plant 2 Plant 3 Warehouse 1 Warehouse 2 Customer 1 Customer 2 21 10 10 1.5 2.2 13 13 13 1.4 The road regulation does not allow truck to load more than 200 tons of the product between any two nodes. The company wants to determine a minimum-cost shipping strategy

Explanation / Answer

Findings and interpretation

Under the optimal transportation plan, the following things should be followed

If the transportation is planned according to this above description, the company will realize a total minimum cost of $6,140.

FromTo Plant 1 Plant 2 Plant 3 WH1 WH2 Cust 1 Cust 2 Plant 1 0 0 0 170 0 0 0 Plant 2 0 0 0 0 0 200 0 Plant 3 0 0 0 30 200 0 120 WH1 0 0 0 0 0 200 0 WH2 0 0 0 0 0 200 0 Cust 1 0 0 0 0 0 0 100 Cust 2 0 0 0 0 0 0 0
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