Question

In: Operations Management

Rent'R Cars is a multisite car rental company in the city. It is trying out a...

Rent'R Cars is a multisite car rental company in the city. It is trying out a new "return the car to the location most convenient for you" policy to improve customer service. But this means that the company has to constantly move cars around the city to maintain required levels of vehicle availability. The supply and demand for economy cars, and the total cost of moving these vehicles between sites, are shown below.

From\To D E F G Supply
A

$10

$5

$8

$4

 85
B

12

5

9

11

 100
C

4

11

9

6

 105
Demand 50 70 70 100 290\290


a. Find the solution that minimizes moving costs using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.)

From/To D E F G Supply
Candidate solution
A
B
C
Total shipped
Cost
A
B
C
Total costs $

Solutions

Expert Solution

The problem can be solved using transportation model in excel

The minimum moving cost is $1,610

Following is the detailed solution

keosha answered 7 months ago
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