Question

64 The Makonsel Company is a fully integrated company that both produces goods and sells them at its retail ouflets. After production, the goods are stored in the company's two warehouses until needed by the retail outlets. Trucks are used to transport the goods from the two plants to the warehouses, and then from the warehouses to the three retail outlets. Unit Shipping Cost Shipping Capacity To From Warehouse 1 Warehouse 2 Warehouse 1 Warehouse 2 Output Plant 1 $425 510 $560 600 125 175 150 200 200 300 Plant 2 Unit Shipping Cost Shipping Capacity To RO3 $490 440 150 RO1 100 125 150 RO2 150 150 200 RO3 100 75 150 From RO1 RO2 $470 390 150 $505 4 10 Warehouse 1 Warehouse 2 Demand 200 'a o outppi per truckload sent to each warehouse, and the maximum amount that it can ship per month to each warehouse. warehouse, and the maximum amount that can be shipped per month from each warehouse. warehouse and from each warehouse to each retail outlet) that will minimize the total shipping cost Usnug units of fill ucdloada the fust thle belaw shoes nct For each retail oulet (RO), the second table below shows its monthly demand, its shipping cost per truckload from each Management now wants to determine a distribution plan (number of truckloads shipped per month from each plant to each a. Draw a network that depicts the company's distribution network. Identify the supply nodes, transshipment nodes, and b. Formulate a network model for this problem as a minimum-cost flow problem by inserting all the necessary data into the demand nodes in this network network drawn in part a. (Use the fomat depicted in Figure 63 to display these data) Formulate and solve a spreadsheet model for this problem. c.

Answer 1

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