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A soda company owns three factories and supplies to four cities: Dallas, TX; For

ID: 387442 • Letter: A

Question

A soda company owns three factories and supplies to four cities: Dallas, TX; Fort Worth, TX; Oklahoma City, OK; and Tulsa, OK. The shipping costs per truckload together with the annual output of each factory and the annual demand of each city are given in transportation soda data.xlsx. Demand and output are both in units of truckloads.

Suppose that you are asked to determine the optimal shipping plan to minimize the total transportation cost, while exactly meeting the demand of each city, and not exceeding the capacity of any of the plants.

What is your objective function in terms of your decision variables? Give an algebraic expression.

Sign in transportation_soda_data (B - Protected View - Excel AutoSaveO File Home Insert Page Layout Formulas Data Review View Help lell me what you want to do PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit its safier to stay in Protected view. Enable Editing 83 Cost (S/Truckload) Factory 1 Factory 2 Factory 3 2 Dallas, TX 3 Fort Worth, TX 4 Oklahoma City, OK 5 Tulsa, OK 6 Annual Output 300 650 450 480 520 690 360 1130 390 315 280 250 660 780 420 Annual Demana 400 280 315 135 + 295% E- Data 49 9/19/2018 Type here to search

Explanation / Answer

Problem Brief:

Soda company owns 3 factories

Supplies to 4 cities

Required:

To minimize the total transportation cost by designing an optimal shipping plan

Based on decision variables we define the Objective function to be transportation cost

Therefore, the expression = Minimize (Transportation Cost)

And we define decision variables to be Truckload and demand.

Calculating the shipping costs for Factory 1, 2 and 3 for Dallas:

Factory 1 = 300*520= 156000

Factory 2 = 690*375= 259500

Factory 3 = 280*420= 117600

Annual Demand for Dallas = 400

Shipping costs for Factory 1,2 and 3 for Fort Worth:

Factory 1 = 650*520 = 338000

Factory 2 = 360*375 = 135000

Factory 3 = 250*420 = 105000

Annual Demand for Fort Worth= 280

Shipping costs for Factory 1,2, and 3 for Oklahoma:

Factory 1 = 450*520 = 234000

Factory 2 = 1130*375 = 423750

Factory 3 = 660*420 = 277200

Annual Demand for Oklahoma = 315

Shipping costs for Factory 1, 2 and 3 for Tulsa:

Factory 1 = 480*520 = 249600

Factory 2 = 390*375 = 146250

Factory 3 = 780*420 = 327600

Annual Demand for Tulsa = 135

The optimal shipping plan to minimize the transportation cost would be Truckload from Factory 3 for Dallas and Fort Worth, Factory 1 for Oklahoma and Factory 2 for Tulsa

Which brings out the cost to be (117600+105000+234000+146250) =  602850

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