Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 6.5, Problem 15P
Summary Introduction

Interpretation: Find the optimal shipping pattern and quantity of the total decrease in demand of 2,000 units is absorbed at each factory at the optimal solution.

Concept Introduction: One of the feasible solution is optimal solution. When the objective function attaining its maximum or minimum value.i.e) the more profit or low cost. Generally, the optimal solution is that none of the feasible solution for the objective functions.

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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   Draw a diagram by showing factories, warehouses, and connecting arcs. Define variables, write the objective function and constraints.
Q: When we solve the given transportation problem according to the lowest cost method, which warehouse and/or warehouses are suitable for shipment from f3 (F: Factory M: Customer)A) no needb) M1, M2, M3c) M1 and M2d) M3 and M1E) M3
A company manufactures a product at its plants in C and D; then ships the product to its four distribution centers in K, L, M, and N. The transportation costs per unit (in dollars per unit) are as follows: from C to K, L, M, and N: 10, 5, 9, and 20. from D to K, L, M, and N: 2, 8, 30, and 10. The monthly demand from K, L., M, and N are: 3000, 1400, 4000, and 1200 units, respectively. On the other hand, the monthly capacity at plants C and D are: 4100 and 5800 units, respectively. Develop a linear programming model that can be used to determine the distribution plan that will minimize total monthly transportation cost. Use Excel Solver to find the optimal solution The optimal solution shows that the total monthly transportation cost is dollars.
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