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:

Retail Outlets Plant 1 2 3 4 1 $500 $600 $400 $200 2 $200 $900 $100 $300 3 $300 $400 $200 $100 4 $200 $100 $300 $200 Plants 1,2,3,4 make 10,20,20, and 10 shipments per month, respectively.

Retail outlets 1,2,3,4 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 shipping cost.

Formulate this problem on a spreadsheet and use Solver to find an optimal solution. SHOW ALL WORK

Respuesta :

Answer:

The minimum cost will be of 10,000 dollars

Explanation:

The cost of each shipment considering starting point and destination:

(IE: From plant 2 to outlet 3 it cost 100)

OUTLET  

PLANTS 1 2 3 4

1  $ 500.00   $ 600.00   $ 400.00   $ 200.00

2  $ 200.00   $ 900.00   $ 100.00   $ 300.00

3  $ 300.00   $ 400.00   $ 200.00   $ 100.00

4  $ 200.00   $ 100.00   $ 300.00   $ 200.00

Maximum deliveries per plants

Make

1  10.00  

2  20.00  

3  20.00  

4  10.00  

Shipment needed per outlet

Receive

1  20.00  

2  10.00  

3  10.00  

4  20.00  

We need to make the minimum cost.

We setp up two more tables, one with the shipment per plant

and one that calcualte the cost.

Then, we put the constrain (the amount each plant can make and the amount each outlet should receive) and let excel solve it

Plant Destination(Outlet 1 //2 //3 //4)            Total shipment

1  -       -       -       10.00     10.00  

2  11.00     -       9.00     -       20.00  

3  9.00     0.00     1.00     10.00     20.00  

4  -       10.00     -       -       10.00  

20 10 10 20

Total order made to each one

We multiply this by the cost-matrix and get a minimum cost of $10,000