Problem:
Minimum costs
Part a
ACE's four plants ship goods to 3 warehouses which in turn ship to 5 retailers The shipping costs per unit are:
4 5 Product Capacity
Plant Salt Lake Dallas Cost/unit unit/week
1 LA 30 40 208 200
2 Kcity 25 45 214 300
3 Savannah 45 30 215 300
6 7 8
Warehouse Best Buy ElectroX Walmart Capacity (units/week)
4 Salt Lake 40 45 20 300
5 Dallas 15 50 40 500
Customer 100 50 150
Demand
per week
Determine production and shipping goals to minimize the costs.
Part b
Suppose we have in addition, the following fixed costs per week:
Plant Fixed Cost ($/week) Warehouse Fixed Cost ($/week)
LA 8000 Salt Lake 4000
Kcity 9000 Dallas 5000
Savannah 9000
These fixed costs apply only if the plant or warehouse is used Determine a new plan addressing shipping and fixed costs as part of the minimum costs