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Project Management - Transportation Problem Solution




Question;A company which manufactures product in five plants ships locally using its own transportationsystem, but has orders which must be sent to locations too far to be serviced by the local fleet.It therefore contracts with a middle distance carrier to complete its shipping. The locations of themanufacturing plants and the amount of product available to be shipped per week are show in thechart below.ManufacturingLocationsColumbiaMaconHuntsvilleGreensboroKnoxvilleTotal AvailableUnitsAvailableper Week4503705502903602020The seven locations and their weekly demand are shown in the chart below.Destination CitiesWeeklyDemandNorfolkCharlestonGainesvilleMobileMemphisLouisvilleRoanokeTotal Available3052533282254201582101899Shipping costs per unit (in dollars) between plants and the destination cities are as follows:Shipping CostsColumbiaMaconHuntsvilleGreensboroKnoxvilleNorfolk$2742422847Charleston$1327312531Gainesville$3119233643Mobile$4223164839Memphis$4818203716Louisville$5136393214Roanoke$4443361734The transportationcompany wants to identify its optimal shipping plan that will satisfy demand at thelowest aggregate shipping cost.QuestionsWhat is the transportation company trying to optimize? Are they trying to maximize or minimize?Write the objective function to support this analysis.What inputs do you need to support your analysis?Is there any extraneous data you have been given that you will not need?What criteria has the transportation company given you to support the analysis?Create a spreadsheet model that supports your analysis.How would you change your model if one of the locations was temporarily unavailable due to severeweather conditions? On a separate sheet in your Excel file, show how you might do this.


Paper#46008 | Written in 18-Jul-2015

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