Question

In: Operations Management

A soft drink manufacturing company has 3 factories - one in Orlando, one in Tampa, and...

A soft drink manufacturing company has 3 factories - one in Orlando, one in Tampa, and one in Port St. Lucie - which supply soft drink bottles to 3 warehouses located in the city of Miami. The associated per-unit transportation cost between the factories and the warehouses is provided in the table below.

Transportation Costs of Factories ($):

Factories / Warehouses	W1	W2	W3
Orlando	6	4	5
Tampa	7	6	5
Port St. Lucie	5	7	6

The factory in Orlando has a capacity of 20,000 units.

The factory in Tampa has a capacity of 20,000 units.

The factory in Port St. Lucie has a capacity of 23,000 units.

The requirements of the warehouses are:

Warehouse	Requirement (Bottles)
W1	20,000
W2	19,000
W3	22,000

The descriptive model for the optimization model is given below. Let:

D11 = number of bottles shipped from Orlando to W1

D12 = number of bottles shipped from Orlando to W2

D13 = number of bottles shipped from Orlando to W3

D21 = number of bottles shipped from Tampa to W1

D22 = number of bottles shipped from Tampa to W2

D23 = number of bottles shipped from Tampa to W3

D31 = number of bottles shipped from Port St. Lucie to W1

D32 = number of bottles shipped from Port St. Lucie to W2

D33 = number of bottles shipped from Port St. Lucie to W3

Minimize: 6D11 + 4D12 + 5D13 + + 7D21 + 6D22 + 5D23 + 5D31 + 7D32 + 6D33

Subject to:

D11 + D12 + D13 <= 20000

D21 + D22 + D23 <= 20000

D31 + D32 + D33 <= 23000

D11 + D21 + D31 >= 20000

D12 + D22 + D32 >=19000

D13 + D23 + D33 >= 22000

All Dij >= 0

Solve the model in Excel and answer the questions below

How much of the companies production should be shipped from each factory to each warehouse in order to minimize the total transportation cost? Enter your answers as integers.

Expert Solution

keosha answered 1 year ago

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