ABC enterprises supply a single product from its two warehouses to three of its customers. The supplies at the warehouses are 120 and 150 units, respectively. The customer demands are 70, 80, and 100 units respectively. The cost of shipping one unit from warehouse i to customer j is as per the following price schedule. Quantity Price Per Unit 0 -25 10$ 25-50 8$ Above 50 6$ For example: If 60 units are being shipped on a particular route, the first 25 units will be charged at the rate of 10 per unit. Similarly, the next 25 units will be charged $8 per unit and the rest at $6 per unit. Develop a linear integer programming model to determine the optimal shipment plan

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...
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ABC enterprises supply a single product from its two warehouses to three of its customers. The supplies at the warehouses are 120 and 150 units, respectively. The customer demands are 70, 80, and 100 units respectively. The cost of shipping one unit from warehouse i to customer j is as per the following price schedule.

Quantity Price Per Unit
0 -25 10$
25-50 8$
Above 50 6$

For example: If 60 units are being shipped on a particular route, the first 25 units will be charged at the rate of 10 per unit. Similarly, the next 25 units will be charged $8 per unit and the rest at $6 per unit. Develop a linear integer programming model to determine the optimal shipment plan.

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