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Optimize Transshipment Problem Solution

This document describes a transshipment problem for WellsCo, a company that produces goods at two plants and ships them to three retail outlets via two warehouses. The document provides the monthly output of each plant, the shipping costs and capacities between plants and warehouses, and the demand, shipping costs and capacities between warehouses and retail outlets. The goal is to formulate a linear program to determine the distribution plan that will minimize the total shipping costs of getting goods from plants to warehouses and then to retail outlets each month.

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20 views1 page

Optimize Transshipment Problem Solution

This document describes a transshipment problem for WellsCo, a company that produces goods at two plants and ships them to three retail outlets via two warehouses. The document provides the monthly output of each plant, the shipping costs and capacities between plants and warehouses, and the demand, shipping costs and capacities between warehouses and retail outlets. The goal is to formulate a linear program to determine the distribution plan that will minimize the total shipping costs of getting goods from plants to warehouses and then to retail outlets each month.

Uploaded by

premheena
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Transshipment Problem Homework

WellsCo is a fully integrated company that both produces goods and sells them at its retail
outlets. WellsCo produces product at two plants and stores the product at one of two warehouses
until shipment to one of WellsCo’s three retail outlets. Using units of full truckloads, the table
below shows each plant’s monthly output, its shipping cost per truckload sent to each warehouse,
and the maximum amount that it can ship per month to each warehouse.

Unit Shipping Cost Shipping Capacity


From\To Warehouse1 Warehouse2 Warehouse1 Warehouse2 Output
Plant 1 425 560 125 150 300
Plant 2 510 600 175 200 300

For each retail outlet (RO), the next table shows its monthly demand, its shipping cost per
truckload from each warehouse, and the maximum amount that can be shipped per month from
each warehouse.

Unit Shipping Cost Shipping Capacity


From\To RO1 RO2 RO3 RO1 RO2 RO3
Warehouse 470 505 490 100 150 100
1
Warehouse 390 410 440 125 150 75
2
Demand 150 200 150

You have been asked formulate and solve a linear program that will determine a distribution plan
(number of truckloads per month from each plant to each warehouse and from each warehouse to
each retail outlet) that will minimize the total shipping cost.

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