Question

In: Operations Management

A company has two warehouses A and B, and three retail outlets 1, 2 and 3....

A company has two warehouses A and B, and three retail outlets 1, 2 and 3. The warehouse capacities, retail outlet demands, and per-unit shipping costs ($) are shown in the table below. Formulate a linear programming (LP) model of this transportation problem with the objective of minimizing total shipping cost.

                   Retail Outlets

Warehouses

   1  

    2

    3

Total Supply

     A   

$5

$8

$3

500

    B

$7

$4

$6

250

            Total Demand

300

400

250

   

Solutions

Expert Solution

XA1 = # units shipped from warehouse A to retail outlet 1

XA2 = # units shipped from warehouse A to retail outlet 2

XA3 = # units shipped from warehouse A to retail outlet 3

XB1 = # units shipped from warehouse B to retail outlet 1

XB2 = # units shipped from warehouse B to retail outlet 2

XB3 = # units shipped from warehouse B to retail outlet 3

keosha answered 1 year ago
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