Question

In: Operations Management

Outtel manufactures tablet computers. These tablet computers are manufactured in Seattle, Columbus, and New York and...

Outtel manufactures tablet computers. These tablet computers are manufactured in Seattle, Columbus, and New York and shipped to retail stores in Pittsburgh, Austin, Denver, Los Angeles and Washington D.C. These retail stores require 420, 290, 320, 510, and 370 tablet computers, respectively. Seattle plant can manufacture up to 720 tablet computers. Columbus plant can manufacture up to 670 tablet computers, and New York plant can manufacture up to 590 tablet computers. Shipping costs per tablet computer between plants and retail stores are given in the following table: Retail Store Plant Pittsburgh Austin Denver Los Angeles Washington Seattle $10.5 $12.6 $7.2 $6.4 $9.8 Columbus $3.6 $18.1 $9.6 $10.6 $5.7 New York $2.9 $17.5 $10.1 $12.4 $3.2 a) Develop a network representation of this problem. b) Formulate a linear programming model that can be used to determine the amount that should be shipped from each plant to each retail store to minimize the total cost. (Write the complete model for the problem. Make sure to give clear definitions of your decision variables). c) Solve the problem by using Excel Solver (Hand-in the one-page value and one-page formulas printouts for the problem).

Solutions

Expert Solution

a)

b) Decision variables

XSP = units shipped from Seattle to Pittsburgh

XSA = units shipped from Seattle to Austin

XSD = units shipped from Seattle to Denver

XSL = units shipped from Seattle to LosAngeles

XSW = units shipped from Seattle to Washington DC

XCP = units shipped from Columbus to Pittsburgh

XCA =  units shipped from Columbus to Austin

XCD =  units shipped from Columbus to Denver

XCL =  units shipped from Columbus to LosAngeles

XCW = units shipped from Columbus to Washington DC

XNP = units shipped from NewYork to Pittsburgh

XNA =  units shipped from NewYork to Austin

XND =  units shipped from NewYork to Denver

XNL =  units shipped from NewYork to LosAngeles

XNW = units shipped from NewYork to Washington DC

Objective function: Minimize the total cost of shipping

Suject to supply constrains of plants, demand constraints of retail stores and non-negativity contraints

c)

keosha answered 6 months ago
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