Question

In: Operations Management

Problem Description: Part I: Solve the transportation problem for the information provided and find the minimum...

Problem Description: Part I: Solve the transportation problem for the information provided and find the minimum cost of transportation. Identify which warehouse has excess capacity or which store has unmet demand.Part II: Include the following additional constraints and the compute the incremental cost of each additional constraint.
(a) All the supply from Warehouse A MUST be shipped.
(b) At least 10000 units must be shipped from Warehouse B to Store 3.

Per unit transportation cost
Ware
house
Store
1 2 3 4 5 6 7 8 9 10
A 2.66 4.90 4.02 3.77 4.80 3.46 2.12 2.62 4.43 4.33
B 5.31 4.39 4.92 5.58 3.27 5.93 6.42 4.84 5.29 3.37
C 2.88 6.41 3.73 5.92 3.56 6.76 5.80 4.74 2.53 6.86
Store 1 2 3 4 5 6 7 8 9 10
Demand 50000 20000 30000 70000 60000 30000 20000 30000 40000 55000
Ware
House
A B C
Supply 250000 125000 75000
Answer to Part I
Answer to Part II(a)
Answer to Part II(b)

Solutions

Expert Solution

Part 1 -

Below is the screenshot of the LP table, solver and result -

Answer for Part 11 ) with Constraints a-

Below is the screenshot of the solver and result -

Part 2 - With Constrains b)

Below is the screenshot of the solver -

Below is the screenshot of the result -

I have calculate the cost with additional constraints a & b separately. And cost for part 1 and With Constraints A and Constraints B is as given below -

Question Cost Incremental Cost from Part 1
Part1 1308150
Constraint A 1323050 14900
Constraint B 1322950 14800

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