Question

A soft drink manufacturing company has 3 factories set up one in each of the three cities - Orland, Tampa, and Port St. Lucie and it supplies the produced soft drink bottles to 3 warehouses located in the city of Miami. The associated per-unit transportation cost table is provided below:

Transportation Costs ($)
Factories/Warehouse (W)	W1	W2	W3
Orlando	4	3	7
Tampa	7	6	4
Port St. Lucie	3	6	6

The factory at Orlando has a capacity of 15,000 units.

The factory at Tampa has a capacity of 18,000 units.

The factory at Port St. Lucie has a capacity of 8,000 units.

The requirements of the warehouses are:

Warehouse	Requirement (Bottles)
W1	18,000
W2	12,000
W3	5,000

1. Determine how much of the company’s production should be shipped from each factory to each warehouse in order to minimize the total transportation cost?

Answer 1

(a)

For this transportation problem, add the data in excel.

Here, the capacity and demand are taken as per data given.

Add formulas as per below screenshot.

Copy the formula to C12 and D12.

Copy this formula to E10 and E11.

Use the following constraints. As capacity must be greater than demand, the constraint is taken with greater than sign.

Click solve and you will see the following dialogue box.

After clicking Ok, you will get the solution.

From Orlando, 3000 shipped to warehouse 1 and 12000 shipped to warehouse 2.

From Tampa, 7000 shipped to warehouse 1 and 5000 shipped to warehouse 3.

From St. Lucie, 8000 shipped to warehouse 1.

Total transportation cost = 141000

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