Question

In: Operations Management

You have three plants that produce a certain type of boats. The capacity for next month...

You have three plants that produce a certain type of boats. The capacity for next month is 38 in San Diego, 45 in Santa

Ana, and 58 in San Jose. Production cost per boat is $1,065 in San Diego, $1,005 in Santa Ana, and $975 in San Jose.

Demand for next month is 42 in Newport Beach, 33 in Long Beach, 14 in Ventura, 10 in San Luis Obispo, and 22 in San

Francisco. The shipping costs per boat are summarized in the following table:

	Shipping	Cost	to:
From	NB	LB	VEN	SLO	SF
SD	$200	$220	$280	$350	$400
SA	$125	$125	$280	$350	$400
SJ	$390	$365	$300	$250	$100

Develop a production and shipping schedule that minimizes the total cost of production and shipping while satisfying all

the demand.

Expert Solution

We tabulate the given data as shown below:

The above table considers transportation cost as well as production cost at each location.

We solve this problem in Excel using Excel Solver as shown below:

Here Total Demand = 42 + 33 + 14 + 10 + 22 = 121

Total Supply = 38 + 45 + 58 = 141

Total Demand < Total Supply. Hence, there will be "<=" sign in Excel Solver for Supply Constraint

We get solution as:

The above solution in the form of formulas along with Excel Solver extract is shown below for better understanding and reference:

The no. of boats to be supplied and transported from each location to each destination is shown as highlighted in purple in the Variables tables above.

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keosha answered 3 months ago

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