Question

A large retailer is planning to open a new store. Three locations in California are currently under consideration: South Coast Plaza (SCP), Fashion Island (FI), and Laguna Hills (LH). Transportation costs for the locations and costs, demands, and supplies for existing locations and warehouses (origins), are shown below. Each of the locations has a demand potential of 300 units per week. Which location would yield the lowest transportation costs for the system? Use the Minimum Cell Cost Heuristic. (Omit the "$" sign in your response.) TO From FI $7 6 LH $5 4 6 Warehouse SCP $4 2 5

Answer 1

With the assumption that the original supply does not change:

	A	B	LH
1	15	9	5
2	10	7	4
3	14	18	6
	A	B	LH
1	0.0	500.0	0.0	500.0	<=	660	Supply constraints
2	340.0	0.0	0.0	340.0	<=	340
3	60.0	0.0	0.0	60.0	<=	200
Demand constraints	400.0	500.0	0.0
	=	=	=
	400	500	0

So the allowable units from

1 - 160 units (660-500)

2 - 0 units (340-340)

3 - 140 units (200-60)

The costs are:

	LH	FI	SCP
Units	Rate	Rate	Rate
160	5	7	4
0	4	6	11
140	6	5	5
Total cost	1640	1820	1340
			Best

The actual description without any assumption:

	A	B	SCP
1	15	9	4
2	10	7	11
3	14	18	5
	A	B	SCP
1	0.0	500.0	160.0	660.0	<=	660	Supply constraints
2	340.0	0.0	0.0	340.0	<=	340
3	60.0	0.0	140.0	200.0	<=	200
Demand constraints	400.0	500.0	300.0
	=	=	=
	400	500	300
Total cost	10080.00
Obj func	Minimize
Transport SCP	1340

	A	B	FI
1	15	9	7
2	10	7	6
3	14	18	5
	A	B	FI
1	60.0	500.0	100.0	660.0	<=	660	Supply constraints
2	340.0	0.0	0.0	340.0	<=	340
3	0.0	0.0	200.0	200.0	<=	200
Demand constraints	400.0	500.0	300.0
	=	=	=
	400	500	300
Total cost	10500.00
Obj func	Minimize
Transport FI	1700

	A	B	LH
1	15	9	5
2	10	7	4
3	14	18	6
	A	B	LH
1	0.0	500.0	160.0	660.0	<=	660	Supply constraints
2	340.0	0.0	0.0	340.0	<=	340
3	60.0	0.0	140.0	200.0	<=	200
Demand constraints	400.0	500.0	300.0
	=	=	=
	400	500	300
Total cost	10380.00
Obj func	Minimize
Transport LH	1640

So :

		Total cost
Transport SCP	1340	10080	Best
Transport FI	1700	10500
Transport LH	1640	10380

So best is SCP