LUXInyiun, Milwaukee, and Salt Lake City, and ships to 12 retail stores, located in Seattle, San Francisco, Las Vegas, Tucson, Denver, Charlotte, Minneapolis, Fayetteville Birmingham, Orlando, Cleveland, and Philadelphia. The company wants to minimize the transportation costs of shipping one of its products. The per unit shipping cost from each distribution center to each retail location and the amounts currently in inventory and ordered at each retail location are shown in the accompanying table. Develop and solve an optimization model to minimize the total transportation cost and answer parts a and b. E Click here to view the shipping data. Cost of Shipping Data a. What is the minimum cost of shipping? Total Cost = $ (Type an integer or a decimal. Do not round.) Atlanta Lexington $1 95 Milwaukee Salt Lake City Demand Seattle $2.15 $1.70 S0 60 $0 55 4,500 San Francisco $2.10 $2.00 S1 85 17,000 Las Vegas $1.75 $1.70 $1.53 $1 10 $1.50 $0.35 4,500 $1 41 so 95 S0 95 $O 40 Tucson $1.50 S141 $0.60 3,400 Denver $1 20 $0.40 4,000 Charlotte SO 65 $0.55 $0. 95 7,000 Minneapolis $0.90 $0.60 $0 40 $1.00 3,500 Fayetteville Birmingham $0.80 $0.35 $1.05 $0.95 $1.10 9,500 $0 60 $0 50 $0.70 $1.35 3, 100 Orlando $0 15 S0 70 $1.60 11.000
LUXInyiun, Milwaukee, and Salt Lake City, and ships to 12 retail stores, located in Seattle, San Francisco, Las Vegas, Tucson, Denver, Charlotte, Minneapolis, Fayetteville Birmingham, Orlando, Cleveland, and Philadelphia. The company wants to minimize the transportation costs of shipping one of its products. The per unit shipping cost from each distribution center to each retail location and the amounts currently in inventory and ordered at each retail location are shown in the accompanying table. Develop and solve an optimization model to minimize the total transportation cost and answer parts a and b. E Click here to view the shipping data. Cost of Shipping Data a. What is the minimum cost of shipping? Total Cost = $ (Type an integer or a decimal. Do not round.) Atlanta Lexington $1 95 Milwaukee Salt Lake City Demand Seattle $2.15 $1.70 S0 60 $0 55 4,500 San Francisco $2.10 $2.00 S1 85 17,000 Las Vegas $1.75 $1.70 $1.53 $1 10 $1.50 $0.35 4,500 $1 41 so 95 S0 95 $O 40 Tucson $1.50 S141 $0.60 3,400 Denver $1 20 $0.40 4,000 Charlotte SO 65 $0.55 $0. 95 7,000 Minneapolis $0.90 $0.60 $0 40 $1.00 3,500 Fayetteville Birmingham $0.80 $0.35 $1.05 $0.95 $1.10 9,500 $0 60 $0 50 $0.70 $1.35 3, 100 Orlando $0 15 S0 70 $1.60 11.000
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Process analysis
The term process analysis can be defined as breakdown of production process into different phases that converts inputs into output. A series of routine activities are incorporated using organizational resources with a view to achieve operational excellence.
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Transcribed Image Text:A company has four distribution centers, located in Atlanta, Lexington, Milwaukoe, and Salt Lake City, and ships to 12 retail stores, located in Seattle, San Francisco, Las Vegas, Tucson, Denver, Charlotte, Minneapolis, Fayetteville
Birmingham, Orlando, Cleveland, and Philadelphia. The company wants to minimize the transportation costs of shipping one of its products. The per unit shipping cost from each distribution center to each retail location and the amounts
currently in inventory and ordered at each retail location are shown in the accompanying table. Develop and solve an optimization model to minimize the total transportation cost and answer parts a and b.
E Click here to view the shipping data.
Cost of Shipping Data
a. What is the minimum cost of shipping?
Total Cost = $
(Type an integer or a decimal. Do not round.)
Atlanta
Lexington
Milwaukee
Salt Lake City
Demand
Seattle
$2.15
$1.95
$1.70
SO 60
4,500
San Francisco
$2.10
$2.00
$0 55
$1.85
17,000
Las Vegas
$1.75
$1.70
$1.50
$0.35
4,500
3,400
Tucson
$1.50
$1.53
$141
$0.60
sO 95
s0 40
Denver
$1.20
$1. 10
S0.40
4,000
Charlotte
S0 65
$0.55
$0. 95
30 40
7,000
Minneapolis
$0.90
$0.60
$0 40
$1.00
3,500
Fayetteville
Birmingham
$0.80
$0.35
$1.05
$0.95
$1.10
9,500
$0 60
$0.70
$1.35
3,100
$0. 15
$0 60
Orlando
$0 50
$O 25
$0.70
$1.60
11,000
Cleveland
S0.35
$1 60
10,000
Philadelphia
$0.50
$0.30
$0 40
$1.70
18,000
Supply
39,000
36,700
15,100
17,000
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