PROBLEM 04

Chambers Corporation produces and markets a product to prevent car theft, and maintains
inventories of the same in various warehouses throughout the country. Recently, your research group
The markets compiled a forecast indicating that a significant increase in demand will occur.
in the near future, after which demand will level off for the foreseeable future.
The company has decided to meet this demand by constructing new plant capacity.
Chambers already has plants in Baltimore and Milwaukee, and does not wish to relocate those facilities. Each
one of its plants is capable of producing 600,000 units per year.
After a careful search, the company formulated three alternatives for sites and capacities.
Option 1 consists of building a plant of 600,000 units in Portland. Option 2, in
build a plant of 600,000 units in San Antonio. Alternative 3, in building a plant of
300,000 units in Portland and another plant of 300,000 units in San Antonio. The company has four
warehouses that distribute the product to retailers.

Decision variable
AT CO LA SE Condition for Use
BT 500000 100000 0 0 600000 =
MW 0 200000 400000 0 600,000 =
PT 0 0 200000 400000 600000 =
Utilization 500000 300000 600000 400000
Condition <= <= <= <=
Restriction 500000 300000 600000 400000 1800000

Objective function
Minimization Z 605000 Portland would be the best option due to

Costs
AT CO LA SE
BT 0.35 0.2 0.85 0.75
MW 0.55 0.15 0.7 0.65
PT 0.85 0.6 0.3 0.1
 The market research study yielded the
no following data:
The Logistics department compiled the following table of
yes costs, which specifies the unit cost of sending the
Warehouse
. Annual demand
expected
Atlanta (AT) 500,000
Columbus (CO) 300,000
Los Ángeles (LA) 600,000
Seatle (SE) 400,000

Restriction
600000
600000
600000
1800000

it has a lower cost

product of each plant to each warehouse in the
more economical way, depending on reliability
of the
diverse transport participants.
As part of the location decision, the
management wishes to have an approximate calculation
del
total distribution cost for each alternative. Plant AT CO LA SE
Apply the transport method and determine which Baltmore $ 0.35 $ 0.20 $ 0.85 $ 0.75
it Milwaukee $ 0.55 $ 0.15 $ 0.70 $ 0.65
the most economical strategy that should be Portland $ 0.85 $ 0.60 $ 0.30 $ 0.10
implement. San Antonio $ 0.55 $ 0.40 $ 0.40 $
0.55
PROBLEM 04
Chambers Corporation produces and markets a product to prevent car theft, and maintains
inventories of the same in various warehouses throughout the country. Recently, their research group
of markets compiled a forecast according to which a significant increase in demand will occur
in the near future, after which demand will level off for the rest of the foreseeable future.
The company has decided to meet this demand by constructing new plant capacity.
Chambers already has plants in Baltimore and Milwaukee, and does not wish to relocate those facilities. Each
one of its plants is capable of producing 600,000 units per year.
After a careful search, the company formulated three alternatives for sites and capacities.
alternative 1 consists of building a plant for 600,000 units in Portland. Alternative 2, in
build a plant of 600,000 units in San Antonio. Alternative 3, to build a plant of
300,000 units in Portland and another plant of 300,000 units in San Antonio. The company has four
warehouses that distribute the product to retailers.

Decision variable
AT CO THE SE Usage Condition
BT 500000 100000 0 0 600000 =
MW 0 200000 0 400000 600000 =
SA 0 0 600000 0 600000 =
Utilization 500000 300000 600000 400000
Condition <= <= <= <=
Restriction 500000 300000 600000 400000 1,800,000

Objective function
Minimization Z 725000

Costs
AT CO THE SE
BT 0.35 0.2 0.85 0.75
MW 0.55 0.15 0.7 0.65
SA 0.55 0.4 0.4 0.55
 The market research study yielded the
ne following data:
The Logistics department compiled the following table of
yes costs, which specifies the unit cost of sending the
Warehouse
. Annual demand
expected
Atlanta (AT) 500,000
Columbus (CO) 300,000
Los Angeles (LA) 600,000
Seatle (SE) 400,000

Restriction
600000
600000
600000
1,800,000
product of each plant to each warehouse in the
more economical way, depending on reliability
of the
various transport participants.
As part of the location decision, the
management wants to have an approximate calculation
del
total distribution cost for each alternative. Plant AT CO LA SE
Apply the transport method and determine which Baltmore $ 0.35 $ 0.20 $ 0.85 $ 0.75
is Milwaukee $ 0.55 $ 0.15 $ 0.70 $ 0.65
the most cost-effective strategy that should be Portland $ 0.85 $ 0.60 $ 0.30 $ 0.10
to implement. San Antonio $ 0.55 $ 0.40 $ 0.40 $
0.55
PROBLEM 04
Chambers Corporation produces and markets a product to prevent car theft, and maintains
inventories of the same in various warehouses throughout the country. Recently, your research group
of markets compiled a forecast according to which there will be a significant increase in demand
in the near future, after which demand will level off for the rest of the foreseeable future.
The company has decided to meet this demand by constructing new plant capacity.
Chambers already has plants in Baltimore and Milwaukee, and does not wish to relocate those facilities. Each
One of its plants is capable of producing 600,000 units per year.
After a careful search, the company formulated three alternatives for sites and capacities.
Option 1 consists of building a plant of 600,000 units in Portland. Option 2, in
build a plant of 600,000 units in San Antonio. Alternative 3, to build a plant of
300,000 units in Portland and another plant of 300,000 units in San Antonio. The company has four
warehouses that distribute the product to retailers.

Decision variable
AT CO THE HE Utilization Condition
BT 500000 100000 0 0 600000 =
MW 0 200000 300000 100000 600000 =
PT 0 0 0 300000 300000 =
SA 0 0 300000 0 300000 =
Utilization 500000 300000 600000 400000
Condition <= <= <= <=
Restriction 500000 300000 600000 400000 1,800,000

Objective function
Minimization Z 650000

Costs
AT CO The SE
BT 0.35 0.2 0.85 0.75
MW 0.55 0.15 0.7 0.65
PT 0.85 0.6 0.3 0.1
SA 0.55 0.4 0.4 0.55
 The market research study yielded the
no following data:
The Logistics department compiled the following table of
yes costs, which specifies the unit cost of sending the
Warehouse
. Annual demand
expected
Atlanta (AT) 500,000
Columbus (CO) 300,000
Los Angeles (LA) 600,000
Seatle (SE) 400,000

Restriction
600000
600000
300000
300000
1800000
product of each plant to each warehouse in the
more economical way, depending on reliability
of the
diverse transport participants.
As part of the location decision, the
management wants to have an approximate calculation
del
total distribution cost for each alternative. Plant AT CO LA SE
Apply the transport method and determine which one Baltmore $ 0.35 $ 0.20 $ 0.85 $ 0.75
is Milwaukee $ 0.55 $ 0.15 $ 0.70 $ 0.65
the most cost-effective strategy that should be Portland $ 0.85 $ 0.60 $ 0.30 $ 0.10
implement. San Antonio $ 0.55 $ 0.40 $ 0.40 $
0.55
Microsoft Excel 16.0 Sensitivity Report
Spreadsheet: [Solver transportation [Link]]Problem 8
Report created: 10/27/2019 9:54:27

Variable cells
Final Reduced Objective Permissible Permissible
Cell Name Value Cost Coefficient Increase Reduce
$C$9 D A 0 4 10 1E+030 4
$D$9 D B 110000 0 7 4 1E+030
$E$9 D C 0 4 8 1E+030 4
$C$10 E A 165000 0 10 1 1
$D$10 E B 55000 0 11 1 1
$E$10 E C 0 6 14 1E+030 6
$C$11 F A 0 3 9 1E+030 3
$D$11 F B 0 5 12 1E+030 5
$E$11 F C 330000 0 4 3 1E+030
$C$12 G A 110000 0 11 1 3
$D$12 G B 0 1 13 1E+030 1
$E$12 G C 330000 0 9 3 3

Restrictions
Final Shadow Permissible Restriction Permissible
Cell Name Valor Precio Right side Increase Reduce
$C$13 Utilization A 275000 -1 275000 55000 165000
$D$13 Utilization B 165000 0 550,000 1E+030 385000
$E$13 Utilization C 660000 -3 660000 55000 165000
$F$9 D Utilization 110000 7 110000 385000 110000
$F$10 Utilization 220000 11 220000 385000 55000
$F$11 F Utilization 330000 7 330000 165000 55000
$F$12 G Utilization 440000 12 440000 165000 55000
PROBLEM 04
Chambers Corporation produces and markets a product to prevent car theft, and maintains
inventories of the same in various warehouses throughout the country. Recently, their research group
of markets compiled a forecast according to which there will be a significant increase in demand
in the near future, after which demand will level off for the foreseeable future.
The company has decided to meet this demand by building new plant capacity.
Chambers ya cuenta con plantas en Baltmore y Milwaukee, y no desea reubicar esas instalaciones. Cada
one of its plants is capable of producing 600,000 units per year.
After a careful search, the company formulated three alternatives for sites and capacities.
Option 1 consists of building a plant of 600,000 units in Portland. Option 2, in
build a plant of 600,000 units in San Antonio. Alternative 3, in building a plant of
300,000 units in Portland and another plant of 300,000 units in San Antonio. The company has four
warehouses that distribute the product to retailers.

Decision variable
A B C Utilization Condition Restriction
D 0 110000 0 110000 = 110000
E 165000 55000 0 220000 = 220000
F 0 0 330000 330000 = 330000
G 110000 0 330000 440000 = 440000
Utilization 275000 165000 660000 1100000
Condition <= <= <=
Restriction 275000 550000 660000 1485000

Objective function
Minimization Z 8525000

Costs
A B C
D 10 7 8
E 10 11 14
F 9 12 4
G 11 13 9
 The market research study revealed the product of c
not following data: more eco-friendly form
The Logistics department compiled the following table of of the
yes costs, in which the unit cost of sending the diversostrans
Warehouse As part of
. Annual demand management of that
expected del
Atlanta (AT) 500,000 total cost of
Columbus (CO) 300,000 Apply the mé
Los Angeles (LA) 600,000 is
Seatle (SE) 400,000 the m strategy
implement.
each plant to each warehouse in the
economic, depending on the reliability
sports participants.
from the location decision, the
to have an approximate calculation

and distribution for each alternative. Plant AT CO LA SE

transport method and determine which Baltmore $ 0.35 $ 0.20 $ 0.85 $ 0.75
Milwaukee $ 0.55 $ 0.15 $ 0.70 $ 0.65
more affordable than it should be Portland $ 0.85 $ 0.60 $ 0.30 $ 0.10
r. San Antonio $ 0.55 $ 0.40 $ 0.40 $
0.55