The distribution manager, Randy Smith, now wants to determine the best plan for how many shipments to send from each plant to the respective retail outlets each month. Randy's objective is to minimize the total shipping cost. Formulate this problem as a transportation problem on a spreadsheet and then use Solver to obtain an optimal solution.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 2: The Cost-Less Corp. supplies its four retail outlets from its four plants. The shipping cost per
shipment from each plant to each retail outlet is given below.
Unit Shipping Cost
Retail Outlet:
1
3
4
Plant
1
$500
$600
$400
$200
2
200
900
100
300
3
300
400
200
100
4
200
100
300
200
Plants 1, 2, 3, and 4 make 10, 20, 20, and 10 shipments per month, respectively. Retail outlets 1, 2, 3, and
4 need to receive 20, 10, 10, and 20 shipments per month, respectively.
The distribution manager, Randy Smith, now wants to determine the best plan for how many shipments to
send from each plant to the respective retail outlets each month. Randy's objective is to minimize the total
shipping cost. Formulate this problem as a transportation problem on a spreadsheet and then use Solver to
obtain an optimal solution.
Transcribed Image Text:Question 2: The Cost-Less Corp. supplies its four retail outlets from its four plants. The shipping cost per shipment from each plant to each retail outlet is given below. Unit Shipping Cost Retail Outlet: 1 3 4 Plant 1 $500 $600 $400 $200 2 200 900 100 300 3 300 400 200 100 4 200 100 300 200 Plants 1, 2, 3, and 4 make 10, 20, 20, and 10 shipments per month, respectively. Retail outlets 1, 2, 3, and 4 need to receive 20, 10, 10, and 20 shipments per month, respectively. The distribution manager, Randy Smith, now wants to determine the best plan for how many shipments to send from each plant to the respective retail outlets each month. Randy's objective is to minimize the total shipping cost. Formulate this problem as a transportation problem on a spreadsheet and then use Solver to obtain an optimal solution.
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