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Solver.com
From Frontline Systems, developers of the Excel Solver.
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Transportation Problem 1 |
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| Minimize
the costs of shipping goods from factories to customers, while not
exceeding |
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supply available from each factory and meeting the demand of each customer. |
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| Cost of shipping ($ per product) |
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Destinations |
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Customer 1 |
Customer 2 |
Customer 3 |
Customer 4 |
Customer 5 |
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| Factory 1 |
$1.75 |
$2.25 |
$1.50 |
$2.00 |
$1.50 |
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| Factory 2 |
$2.00 |
$2.50 |
$2.50 |
$1.50 |
$1.00 |
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| Number of
products shipped |
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Customer 1 |
Customer 2 |
Customer 3 |
Customer 4 |
Customer 5 |
Total |
Capacity |
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| Factory 1 |
0 |
0 |
0 |
0 |
0 |
0 |
60,000 |
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| Factory 2 |
0 |
0 |
0 |
0 |
0 |
0 |
60,000 |
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| Total |
0 |
0 |
0 |
0 |
0 |
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| Demand |
30,000 |
23,000 |
15,000 |
32,000 |
16,000 |
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| Total cost of
shipping |
$0 |
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| Problem |
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| A
company wants to minimize the cost of shipping a product from 2 different
factories to 5 different customers. |
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factory has a limited supply and each customer a certain demand. How should
the company distribute the |
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| product? |
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| Solution |
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| 1)
The variables are the number of products to ship from each factory to the
customers. These are given the |
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| name Products_shipped
in worksheet Transport1. |
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| 2) The logical
constraint is |
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Products_shipped >= 0 via the Assume Non-Negative option |
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| The other two
constraints are |
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Total_received >= Demand |
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Total_shipped <= Capacity |
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| 3) The
objective is to minimize cost. This is given the name Total_cost. |
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| Remarks |
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| This
is a transportation problem in its simplest form. Still, this type of model
is widely used to save many |
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| housands of
dollars each year. |
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| In
worksheet Transport2 we will consider a 2-level transportation, and in
worksheet Transport3 we expand this to |
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| a
multi-product, 2-level transportation problem. |
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