a. Develop a network model of the distribution system for this problem. b. Solve the problem to determine the minimum cost shipping schedule.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter7: Nonlinear Optimization Models
Section7.3: Pricing Models
Problem 11P
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1 A company imports goods at two ports: Lisbon and Le Havre. Shipments of one of its
products are made to customers in Paris, Berlin, London and Milan. For the next
planning period, the supplies at each port, customer demands and the shipping costs
(€) per case from each port to each customer are as follows:
Customers
Port
Paris
Berlin
London
Milan
Port Supply
Lisbon
2
5 000
Le Havre
1
2
7
3 000
Demand
1400
3 200
2000
1 400.
a. Develop a network model of the distribution system for this problem.
b. Solve the problem to determine the minimum cost shipping schedule.
Transcribed Image Text:1 A company imports goods at two ports: Lisbon and Le Havre. Shipments of one of its products are made to customers in Paris, Berlin, London and Milan. For the next planning period, the supplies at each port, customer demands and the shipping costs (€) per case from each port to each customer are as follows: Customers Port Paris Berlin London Milan Port Supply Lisbon 2 5 000 Le Havre 1 2 7 3 000 Demand 1400 3 200 2000 1 400. a. Develop a network model of the distribution system for this problem. b. Solve the problem to determine the minimum cost shipping schedule.
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