The Lakeland Paper Company manufactures paper at three factories (F1, F2 and F3) and ships their products two depots (D1 and D2).
At the depots the products are repackaged and sent to five regional warehouses (W1, W2, W3, W4 and W5) around the country, in response
to replenishment orders.
Each of the factories has a known monthly production capacity, and each of the three regional warehouses have placed their demands
for the next month.
The following tables summarize the data that have been collected for this planning problem:
Transportation (shipping) costs
Depots
Factory D1 D2 Capacity
F1 $1.28 $1.36 2,500
F2 $1.33 $1.38 2,500
F3 $1.68 $1.55 2,500
7,500
Warehouses
Depot W1 W2 W3 W4 W5
D1 $0.60 $0.42 $0.32 $0.44 $0.68
D2 $0.57 $0.30 $0.40 $0.38 $0.72
"Requirement
(demand)" 1,200 1,300 1,400 1,500 1,600 7,000
Assignments/Tasks
Develop a network model of this problem.
Develop a linear programming model of this problem.
Determine the optimal schedule of shipments to minimize total cost using Solver.