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Transportation Problem Analysis

The document presents a linear programming model to solve a transportation problem for distributing products from two plants (Clifton Springs and Danville) to four customers (D1, D2, D3, D4). The objective is to maximize total profit. Constraints include plant capacities, customer orders, and non-negativity of shipments. Excel Solver is used to find the optimal solution: Clifton Springs ships 4000 units to D2 and 1000 units to D4, while Danville ships 2000 units to D1 and 1000 units to D4. This satisfies all constraints except D2's order is short by 1000 units.

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Ira Grace De Castro
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32 views4 pages

Transportation Problem Analysis

The document presents a linear programming model to solve a transportation problem for distributing products from two plants (Clifton Springs and Danville) to four customers (D1, D2, D3, D4). The objective is to maximize total profit. Constraints include plant capacities, customer orders, and non-negativity of shipments. Excel Solver is used to find the optimal solution: Clifton Springs ships 4000 units to D2 and 1000 units to D4, while Danville ships 2000 units to D1 and 1000 units to D4. This satisfies all constraints except D2's order is short by 1000 units.

Uploaded by

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

Ira Grace B. De Castro.

ACN1 | CAED101

Table 1. Profit per Unit for Each Plant-Customer Alternative


Customer
Plant D1 D2 D3 D4
Clifton Springs $32 $34 $32 $40
Danville $34 $30 $28 $38

Table 2. Plant Capacities


Plant Capacity (units)
Clifton Springs 5000
Danville 3000

Table 2. Customer Orders


Distributor Orders (units)
D1 2000
D2 5000
D3 3000
D4 2000

Objective Function
Max 32x11 + 34x12 + 32x13 + 40x14 + 34x21 + 30x22 + 28x23 + 38x24

s.t.
x11 + x12 + x13 + x14 ≤ 5000 Clifton Springs Plant Capacity/Supply
x21 + x22 + x23 + x24 ≤ 3000 Danville Plant Capacity/Supply
x31 + x32 + x33 + x34 ≤ 4000 Dummy Origin Plant Capacity/Supply
x11 + x21 + x31 = 2000 D1 Customer Order/Demand
x12 + x22 + x32 = 5000 D2 Customer Order/Demand
x13 + x23 + x33 = 3000 D3 Customer Order/Demand
x14 + x24 + x34 = 2000 D4 Customer Order/Demand
x11 + x12 + x13 + x14 + x21 + x22 + x23 + x24 ≥ 0

Fig.1. Linear Programming Model


Fig.2. Network Presentation
TRANSPORTATION PROBLEM
A. Objective Function
Profit from Clifton Springs Plant = 32x11 + 34x12 + 32x13 + 40x14
Profit from Danville Plant = 34x21 + 30x22 + 28x23 + 38x24
B. Constraints
Plant Capacity or Supply Constraints
x11 + x12 + x13 + x14 ≤ 5000 Clifton Springs Capacity/Supply
x21 + x22 + x23 + x24 ≤ 3000 Danville Capacity/Supply
x31 + x32 + x33 + x34 ≤ 4000 Dummy Origin Plant Capacity/Supply
Distributor Orders or Demand Constraints
x11 + x21 + x31 = 2000 D1 Customer Order/Demand
x12 + x22 + x32 = 5000 D2 Customer Order/Demand
x13 + x23 + x33 = 3000 D3 Customer Order/Demand
x14 + x24 + x34 = 2000 D4 Customer Order/Demand
Dummy Origin (If total supply is not equal to total demand)
Total Suppy = 5,000 Clifton Plant Capacity + 3,000 Danville Plant Capacity
Total Supply = 8,000
Total Demand = 2,000 D1 Order + 5,000 D2 Order + 3,000 D3 Order + 2,000 D4 Order
Total Demand = 12,000
Supply of the dummy origin = Total Demand – Total Supply
Supply of the dummy origin = 12,000 – 8,000
Supply of the dummy origin = 4,000

EXCEL SOLVER – LINEAR PROGRAMMING


Variables
Objective
Clifton Springs
x 11 0 Maximize $ 282,000.00
x 12 4000
Constraints
x 13 0
No. Equality
x 14 1000
1 5000 ≤ 5000
Danville 2 3000 ≤ 3000
x 21 2000 3 4000 ≤ 4000
x 22 0 4 2000 = 2000
x 23 0 5 5000 = 5000
x 24 1000 6 3000 = 3000
7 2000 = 2000
Dummy Origin
x 31 0
x 32 1000
x 33 3000
x 34 0
FINDINGS
Distributor Orders or Demand
D1 Customer Order/Demand
x11 + x21 = 2000 2000 = 2000
0 + 2000 = 2000
D2 Customer Order/Demand
x12 + x22 = 5000 4000 < 5000 Shortfall: 1000
4000 + 0 = 4000
D3 Customer Order/Demand
x13 + x23 = 3000 0 < 3000 Shortfall: 3000 or No Units Sold
0+0=0
D4 Customer Order/Demand
x14 + x24 = 2000
2000 = 2000
1000 + 1000 = 2000
Plant Capacity or Supply
Clifton Spring
x11 + x12 + x13 + x14 ≤ 5000
0 + 4000 + 0 + 1000 ≤ 5000
Danville
x21 + x22 + x23 + x24 ≤ 3000
2000 + 0 + 0 + 1000 ≤ 3000

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