Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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ABC pharmaceutical Company has four factories that ship supplies to four warehouses. The company’s management hires you as a consultant to determine a minimum-cost shipping plan for its monthly output to the warehouses. Factory capacities, warehouse demands, and shipping cost per box are shown below.

 

Factory

Supply or capacity (boxes)

Warehouse

Demand (boxes)

Richmond

60

Chicago

100

Santa Fe

80

Jacksonville

90

Austin

120

Huntville

50

Vacaville

90

Fresno

70

 

 

 

Shipping Costs per box (In Dollars)

From

To Chicago

To Jacksonville

To Huntsville

To Fresno

Richmond

35

35

46

60

Santa Fe

65

40

35

25

Austin

50

50

80

90

Vacaville

40

40

66

75

 

  1. Draw a diagram by showing factories, warehouses, and connecting arcs.
  2. Define variables, write the objective function and constraints. 

 

Expert Solution
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Step 1 Introduction:-

The transportation model is used to calculate the minimum cost of the route by selecting different supplies and demands. There are basically the main methods that are used under the transportation model, i.e., the least cost method, VAM, and northwest corners. These methods help in finding the feasibility of the solution but optimally of the solution can be checked the other methods: - The stepping stone method, MODI method, or linear programming method.

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