29 Jul quantitative week 5
1. The Childfair Company has three plants producing child push chairs that are to be
shipped to four distribution centers. Plants 1,2 and 3 produce 12, 17, and 11 shipments
per month, respectively. Each distribution center needs to receive 10 shipments per
month. The distance from each plant to the respective distribution centers is given below:
(Read pp. 425-431 & pp.480-484) (30 points)
Distance to Distribution Center (Mile)
1 2 3 4
Plant
1 800 1,300 750 700
2 1100 1,400 900 1,100
3 600 1,300 800 900
The freight cost for each shipment is $85 plus 55 cents mile. How much should be
shipped from each plant to each of the distribution centers to minimize the total shipping
cost? Formulate this problem as a transportation problem on a spreadsheet and then use
the Excel Solver to obtain an optimal solution. Also, interpret the results using at least
150 words by addressing the following issues. Also, please make sure you provide
answer report you obtained from Excel Solver.
a. What is the optimal mix of shipments from each plant to each of the distribution
center?
b. What is the minimum cost that could be achieved?
2. The following table shows the unit shipping cost between cities, the supply at each source
city and demand at each destination city. (Read pp. 425-431 & pp.480-484) (30 points)
Destination
Source Terre Haute Indianapolis Ft. Wayne South Bend Supply
St. Louis 8 6 12 9 100
Evansville 5 5 10 8 100
Bloomington 3 2 9 10 100
Demand 150 60 45 45
a. Given this table, set up a linear programming model as shown in page 428 for this
transportation problem
b. Provide the optimal solution using Solver in Excel. You must provide the optimal unit
of products shipped from each source city to each destination city, and total minimum
cost
c. Discuss any biblical principles that could be relevant to business issues (This is an open-
ended question and therefore there is no definite answer.)
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