Question

In: Statistics and Probability

I REALLY JUST NEED TO KNOW THE TOTAL SHIPPING COST AND THE SHIPPING PATTERN! House Beer...

I REALLY JUST NEED TO KNOW THE TOTAL SHIPPING COST AND THE SHIPPING PATTERN!

House Beer has three breweries in Portland, New York and Scranton. The cases of beer are sent to warehouses in Boston and Atlantic City and then shipped to the distribution centers in Pittsburgh, Cincinnati, and Atlanta. The shipping cost per case from each brewery to each warehouse and the supply and demand are given below. (15 points)

Warehouse

Brewery

Boston

Atlantic City

Portland

0.38

1.16

New York

0.50

0.40

Scranton

1.20

0.60

                                                                    Distribution Center

Warehouse

Pittsburgh

Cincinnati

Atlanta

Boston

0.70

1.20

1.50

Atlantic City

0.50

0.90

1.20

Capacity of Each Brewing

Demand at Each Distribution Center

Portland

1600

Pittsburgh

1800

New York

2000

Cincinnati

2000

Scranton

2500

Atlanta

2300

      a.   Draw the network diagram for this problem.

      b.   Using Excel solve the above problem and give the optimal solution.

      Write your optimum shipping pattern and the total shipping cost below.

Total Cost =                           

Your shipping pattern:

Solutions

Expert Solution

The final cost value is arrived by multiplying the total cost with the supplied quantity i.e. 10018.


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