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Optimize TV Shipment Costs Analysis

The Zephyr Television Company ships televisions from three warehouses to three retail stores each month to meet fixed store demands. The company wants to minimize transportation costs by determining the optimal number of televisions to ship from each warehouse to each store. The summary provides supply quantities for each warehouse and demand quantities for each store, along with the shipping costs between each warehouse-store pair. Decision variables are defined as the number of TVs shipped between each warehouse-store combination, with constraints ensuring supply and demand quantities are met. The objective is to minimize the total transportation costs.

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Prejit Radhakrishna
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140 views4 pages

Optimize TV Shipment Costs Analysis

The Zephyr Television Company ships televisions from three warehouses to three retail stores each month to meet fixed store demands. The company wants to minimize transportation costs by determining the optimal number of televisions to ship from each warehouse to each store. The summary provides supply quantities for each warehouse and demand quantities for each store, along with the shipping costs between each warehouse-store pair. Decision variables are defined as the number of TVs shipped between each warehouse-store combination, with constraints ensuring supply and demand quantities are met. The objective is to minimize the total transportation costs.

Uploaded by

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

A Transportation Example

The Zephyr Television Company ships televisions from three warehouses to three retail stores on
month, and each store has a fixed demand per month. The manufacturer wants to know the num
each store in order to minimize the total cost of transportation.
Each warehouse has the following supply of televisions available for shipment each month:

Warehouse Supply (sets)


Cincinati (1) 300
Atlanta (2) 200
Pittsburg (3) 200
700

Each retail store has the following monthly demand for television sets:

Store Demands (sets)


New York (A) 150
Dallas (B) 250
Detroit ( C) 200
600

Costs of transporting television sets from the warehouses to the retail stores vary as a result of d
The shipping cost per television set for each route is as follows:

From Warehouse To Store


A B C
1 $ 16.00 $ 18.00 $ 11.00
2 $ 14.00 $ 12.00 $ 13.00
3 $ 13.00 $ 15.00 $ 17.00

Decision Variables
No. of TV transported from Warehouse to Store

New York (A) Dallas (B) Detroit ( C)


Cincinati (1) 0 0 200
Atlanta (2) 0 200 0
Pittsburg (3) 150 50 0
Constraints

TV sets from Cincinati 200 300


TV sets from Atlanta 200 200
TV sets from Pittsburg 200 200
TV sets Demands at New York 150 150
TV sets Demands at Dallas 250 250
TV sets Demands at Detroit 200 200

Objective Functions

Minimize Cost Z $ 7,300.00


ree retail stores on a monthly basis. Each warehouse has a fixed supply per
ts to know the number of television sets to ship from each warehouse to

each month:

ary as a result of differences in modes of transportation and distances.


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