In: Operations Management
(Rock transshipment problem) Bamm Mining Company is currently extracting rock from two mines. Once it is taken from the ground and loaded on a truck, it is sent to one of two plants for processing. The processed rock is then shipped to one of three builders’ supply stores, where it is sold for landscaping purposes. The cost of transportation, the supply available at each mine, and the processing capacity of each plant are given in the following table.
Cost per Ton for Shipping
To Processing Plant |
|||
From Mine |
#1 |
#2 |
Daily Supply |
A |
$8 |
$5 |
500 tons |
B |
$6 |
$7 |
400 tons |
Processing capacity (per day) |
500 tons |
380 tons |
The cost of shipping from each processing plant to each store and the daily demand are as follows:
Cost per Ton for Shipping
To |
|||
From Plant |
Builders’ Home |
Homeowners’ Headquarters |
Hardware City |
#1 |
$19 |
$15 |
$20 |
#2 |
$16 |
$28 |
$21 |
Daily Demand |
200 |
240 |
330 |
Formulate a linear program that can be used to determine how to meet the demands of the three stores at the least cost. (Please define variables and set up the objective function and constraints of this problem using LP) (5 points)