Question

In: Operations Management

Slick Oil Company has three warehouses from which it can ship products to any of three...

Slick Oil Company has three warehouses from which it can ship products to any of three retail outlets. The demand in cans for the product Gunkout is 320 at retail outlet 1; 350 at outlet 2; and 255 at outlet 3. The inventory (capacity) of Gunkout at warehouse A is 270; at warehouse B is 375; and at warehouse C is 390. The cost of transporting one unit of Gunkout from each warehouse to each retail outlet follows.

Retailer
Warehouse 1 2 3
A 14 13 11
B 8 6 9
C 5 6 8

a. Formulate an LP to determine how many units should be shipped from each warehouse to each retailer so the demand at each retailer is met at minimum cost.

b. Solve this problem on a computer. (Note: feel free to use the 3 x 3 Transportation Model Template on the course website.)

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Expert Solution


keosha answered 4 months ago
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