Question

In: Accounting

*Please include Spreadsheets and formulas, if applicable* The distribution system for the Herman Company consists of...

*Please include Spreadsheets and formulas, if applicable*

  1. The distribution system for the Herman Company consists of three plants, two warehouses, and four customers. Plant capacities and shipping costs per unit (in $) from each plant to each warehouse are as follows

Warehouse

Plant

1

2

Plant Capacity

A

5

7

470

B

8

5

610

C

5

6

400

Customer demand and shipping costs per unit (in $) from each warehouse to each customer are as follows:

Customer

Warehouse

Nikki

Greg

Tommy

Vincent

1

6

3

8

4

2

3

6

7

7

Customer Demand

300

350

300

400

  1. Formulate a linear programming model of this transshipment problem.  Write it below.

  1. Solve the linear program to determine the optimal shipping plan and write it below. What is the minimal shipping cost?

Start Node End Node Units shipped

1 4 _____________

1 5 ____________

2 4 ____________

2 5 ____________

3 4 _____________

3 5 ____________

4 6 _____________

4 7 _______________

4 8 _____________ Total Cost=_____________________

4 9 _____________

5 6 ______________

5 7 ______________

5 8 ______________

5 9 ______________

Solutions

Expert Solution

a)

b)

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