What is the optimal network without baltimore and the


a. If all 5 plants are kept open, what is the optimal shipment pattern and system cost?

b. A fire has prompted the decision to shut down the Baltimore plant. Assuming that the other 4 plants must be kept open, what is the optimal network without Baltimore and the monthly cost of this new network configuration? What is the value to the supply chain network, of having the Baltimore Plant available (when compared to the situation in a)?

c. If all 5 plants are kept open, but Cheyenne cannot supply Portland, how should the network be configured, what are the shipment patterns, and what is the resulting monthly cost?

Inputs - Costs, Capacities, Demands (Table 5.2 for TelecomOne and HighOptic)

Production and Transportation Cost per 1000 Units

Supply CityAtlanta BostonChicagoDenverOmahaPortlandFixed CostCapacity
Baltimore 1,675 400 685 1,630 1,160 2,800 7,650 18
Cheyenne 1,460 1,940 970 100 495 1,200 3,500 24
Salt Lake 1,925 2,400 1,425 500 950 800 5,000 27
Memphis 380 1,355 543 1,045 665 2,321 4,100 22
Wichita 922 1,646 700 508 311 1,797 2,200 31
Demand 10 8 14 6 7 11










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