A Western Canadian wholesaler/distributor has two distribution centers, one in V

Question

A Western Canadian wholesaler/distributor has two distribution centers, one in Vancouver and one in Edmonton. These serve a number of retail regions; demand information as well as cost information has been provided below. Assuming that each DC has a capacity of 50 units, find the optimal allocation of demand to DC in order to meet demand at all locations at minimum cost and not exceeding capacity. Report the total cost; please also copy the worksheet into the workbook that you submit. (Note that you will need to use the Linear Solver). ______________

Cost to ship from DC to Retail Area (per aggregated deand unit, 00 $4. 50 $8.00 $10.00 $10.00$7.00$7.00$7.00 $12. 00 15. 00 Edmonton$ 1 8. 00 10. 00 . 00 Vancouver$11.00 9. 00 6. 00 7.00$12. 00

Explanation / Answer

The question is about transportation problem, therefore formulation and solution using excel solver is as follows:

Objective is to minimize total cost of shipping Sigma(i,j)CijXij where Xij are decision variables

Constraints are in terms of supply from DC and demands at the retail centers Sigma(j)Xij <=50, Sigma(i)Xij = Dj

Being quantities Xij are non-negative integers

Solution using excel solver is as follows:

Total minimum cost is $467.5

Cost per unit demand Cij from ith to jth location From/To Edmonton Vancouver Vernon Red Deer Calgury Kamloops Prince G Nelson Lethbridge Grande Pra Bonnville Supply Edmonton 1 8 10 3 4.5 8 10 10 7 7 7 50 Vancouver 11 1 6 12 9 6 8 7 12 12 15 50 Demand 12 15 7 7 14 8 8 7 7 6 7 98

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.