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Forbelt Corporation has a one-year contract to sup...




Forbelt Corporation has a one-year contract to supply motors for all refrigerators produced by the Ice Age Corporation. Ice Age manufactures the refrigerators at four locations around the country: Boston, Dallas, Los Angeles (LA), and St. Paul (SP). Plans call for the following number (in thousands) of refrigerators to be produced at each location: Boston ? 50K Dallas ? 70K LA ? 60K SP ? 80K Forbelt?s three plants are capable of producing the motors. The plants and production capacities (in thousands) are: Denver ? 100k Atlanta ? 100 Chicago ? 150 Because of varying production and transportation costs, the profit that Forbelt earns on each lot of 1000 units depends on which pant produced the lot and which destination it was shipped to. The following table gives the accounting department estimates of profit per unit (shipments will be made in lots of 1000 units): Shipped To Produced At Boston Dallas Los Angeles St. Paul Denver 7 11 8 13 Atlanta 20 17 12 10 Chicago 8 18 13 16 With profit maximization as a criterion, Forbelt?s management wants to determine how many motors should be produced at each plant and how many motors should be shipped from each plant to each destination. A. Develop a network representation of the model B. Find the optimal solution (I already have A... I can't figure out the optimal solution for the problem.)


Paper#6939 | Written in 18-Jul-2015

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