Chapter 5 - Network Modeling : S-1

Chapter 5
Network Modeling
1.

If supplies are represented by positive numbers and demands are represented numbers, the balance-of-flow
rule would be stated as follows:
For Minimum Cost Network
Apply This Balance-of-Flow Rule
Flow Problems Where:
At Each Node:
Total Supply > Total Demand
Outflow - Inflow Supply or Demand
Total Supply < Total Demand
Outflow - Inflow Supply or Demand
Total Supply = Total Demand
Outflow - Inflow = Supply or Demand

2.

Multiply both sides of the constraint by -1 and reverse the sign of the inequality.

3.

See file: Prb5_3.xls

a.

Total cost = $3,398

1
2
3
4
5
6
7
8
9

b.

Total cost = $3,129

1
2
3
4
5
6
7
8
9

c.

d.

Node
Newspaper
Mixed
Paper
White
Office
Cardboard
Process 1
Process 2
Newsprint
Packaging
Print Stock

Node
Newspaper
Mixed Paper
White Office
Cardboard
Process 1
Process 2
Newsprint
Packaging
Print Stock

Net
Flow
-80.0

Supply/Deman
d
-80

-50.0

-50

-30.0
-40.0
0.0
0.0
60.0
40.0
50.0

-30
-40
0
0
60
40
50

Net
Flow
-80.0
-50.0
-30.0
-25.4
0.0
0.0
60.0
40.0
50.0

Supply/Deman
d
-80
-50
-30
-40
0
0
60
40
50

In part a, if we assume supply is inadequate the demand (when, in fact, it is adequate) we require all
the supply to be used even if it is not all needed. This results in higher than necessary costs. In
part b, assuming supply is adequate to meet demand (when, in fact, it is) resulted in a smaller total
cost as this solution does not require all the supply to be used.
Errata: This question should refer the reader to Figure 5.21 rather than 5.19 and should indicate the
shortage occurs on print stock pulp rather than packaging pulp. The shortage on print stock pulp can
be reduced to 4 units (without sacrificing newspaper or packing paper pulp) at an additional cost of
$307.

Chapter 5 - Network Modeling : S-2

4.

Because there is a 10% loss of flow on all arcs going to node 4, a total of 702/0.9 = 780 units must flow
into node 4. Thus, we can simply increase the demand at node 4 to 780 and assume no loss of flow occurs
on arcs leading into this node. Similarly, only 608/1.05 = 579.05 units must flow into node 5. Thus, we
can simply decrease the demand at node 5 to 579.05 and assume no gain of flow occurs on the arcs
leading into this node.

5.

-5
1
6

7
4
+4

+0

+8
8

5
5
-7

6.

This is a transportation problem.

2
-8

+5

1
5

+5

+5

4
-7

7.

3
7

The cost on each arc increases by $2,000. The optimal plan under both leasing options is to replace the
equipment at the beginning of years 3 and 5. However, leasing option 2 provides the lowest total cost
($122,965 + $62,000) and is therefore the preferred alternative. See file: Prb5_7.xls

Chapter 5 - Network Modeling : S-3

8.

a. One solution is:

b.
9.

310 feet.

a.

-30
-40

$6.50

Reg1

$7.50
Reg 2

$7.00

Pine Hills
6

$8.00

-25

Reg 3

$8.25

60
$7.25

$6.75

-35

Reg 4

$7.75

Eustis
7

70

$7.00

-33
b.
c.

10. a.

Reg 5

$7.50
$6.75

Sanford
8

See file Prb5_9.xls

20,000 from Region 1 to Pine Hills, 10,000 from Region 1 to Eustis, 40,000 from Region 2 to Pine
Hills, 25,000 from Region 3 to Eustis, 35,000 from Region 4 to Sanford, 25,000 from Region 5 to
Eustis, 5,000 from Region 5 to Sanford. Total cost $1,132,500.

40

Chapter 5 - Network Modeling : S-4

+410
Beg
Inv
1

$0
lb = 0

+310

+580

+540

+50

D1

$1.50

D2

$1.50

D3

$1.50

$1.50

lb = 50

D4

lb = 50

lb = 50

lb = 50

Fin
Inv
10

-120
$49 lb = 400

$45

lb = 400

$46 lb = 400

P1

P2

P3

-500

-520

-450

$47 lb = 400

P4
8

-550

note: lb =lower bound

b.
c.
d.

See file Prb5_10.xls

Produce 420 in month 1, 520 in month 2, 400 in month 3, 450 in month 4, carry 110 in inventory
from month 1 to 2, 50 from month 2 to 3, 140 from month 3 to 4, and 50 at the end of month 4.
Total Cost = $83,565.
Not much, only $45.

11. a. Errata: Production costs (per 1000) in January, February, March, April, May and June are $7,100,
$7,700, $7,600, $7,800, $7,900, and $7,400, respectively.

Costs for each arc are shown in the spreadsheet.

b.
c.

See file: Prb5_11.xls

Ship
From
0 1 Jan
13

To
Mar

Unit Cost
$7,265

Chapter 5 - Network Modeling : S-5

0
0
0
6
10
0
0
0
0
13
0
14
0
0
0
6
0
20
0
0
0
0
26
0
0
0
33
3
0

1
1
1
1
1
2
2
2
2
2
2
3
3
3
3
3
3
4
4
4
4
4
5
5
5
5
6
6
6

Jan
Jan
Jan
Jan
Jan
Feb
Feb
Feb
Feb
Feb
Feb
Mar
Mar
Mar
Mar
Mar
Mar
Apr
Apr
Apr
Apr
Apr
May
May
May
May
Jun
Jun
Jun

14
15
16
17
18
13
14
15
16
17
18
13
14
15
16
17
18
14
15
16
17
18
15
16
17
18
16
17
18

Apr
May
Jun
July
Aug
Mar
Apr
May
Jun
July
Aug
Mar
Apr
May
Jun
July
Aug
Apr
May
Jun
July
Aug
May
Jun
July
Aug
Jun
July
Aug

Total Cost

$7,320
$7,375
$7,430
$7,485
$7,540
$7,810
$7,865
$7,920
$7,975
$8,030
$8,085
$7,600
$7,720
$7,775
$7,830
$7,885
$7,940
$7,800
$7,935
$7,990
$8,045
$8,100
$7,900
$8,050
$8,105
$8,160
$7,400
$7,555
$7,610
$1,006,675

Chapter 5 - Network Modeling : S-6

12. a.
Legend: (Cost, Upper Bound)

($20, 50)

C-O

($135, 200)

150

-300

C-N

200

($178, 200)

($156.5, 250)

10

-300

($159.5, 250)

H-N

H-O
1

($20, 50)

DnO
5

150

($171, 200)

DnN

200

($139, 200)

B-O
-400

($20, 50)

150

200

($157.5, 250)

B-N
8

-400

($153.5, 250)
($20, 50)

A-O

A-N

150
b.
c.

($152.5, 250)

DaN

($132, 200)
($173, 200)

11

($160.5, 250)

DaO
($176, 200)

($155.5, 250)

($134, 200)

200

($154.5, 250)

12

See file: Prb5_12.xls

Flow
0
200
0
100
200
0
150
50
0
150
0
150
150
0
200
50
50
50
0
0

From
1 Huntington-O
1 Huntington-O
1 Huntington-O
1 Huntington-O
2 Bakersfield-O
2 Bakersfield-O
2 Bakersfield-O
2 Bakersfield-O
7 Huntington-N
7 Huntington-N
7 Huntington-N
7 Huntington-N
8 Bakersfield-N
8 Bakersfield-N
8 Bakersfield-N
8 Bakersfield-N
3 Dallas-O
4 Chicago-O
5 Denver-O
6 Atlanta-O

To
3
4
5
6
3
4
5
6
9
10
11
12
9
10
11
12
9
10
11
12

Dallas-O
Chicago-O
Denver-O
Atlanta-O
Dallas-O
Chicago-O
Denver-O
Atlanta-O
Dallas-N
Chicago-N
Denver-N
Atlanta-N
Dallas-N
Chicago-N
Denver-N
Atlanta-N
Dallas-N
Chicago-N
Denver-N
Atlanta-N
Total Cost

Cost
$139.00
$135.00
$134.00
$132.00
$176.00
$178.00
$171.00
$173.00
$160.50
$156.50
$155.50
$153.50
$157.50
$159.50
$152.50
$154.50
$20.00
$20.00
$20.00
$20.00
$220,050.00

Chapter 5 - Network Modeling : S-7

13. a.
57.429

27.800
37.913

43.7

21.3

30.825

0.0

22.529

23.813

8.000

+1

36.629

-1

37.000

20.125
16.0

17.100

51.613

63.313

50.329

35.4

77.155

Notes: 0-1 = keep current equipment to use during the coming year
0-2 = trade-in current equipment immediately and use new equipment during the coming year
b.

See file: Prb5_13.xls

The solution is: X01=X13= X37=1 with a minimum total cost of $67,825.

c.

The problem could be made more realistic by considering the tax savings associated with depreciation
on the equipment. Also, the current problem does not consider the time value of money (i.e., we
might attempt to minimize the net present value of the cash flows). Both of these considerations
could be accommodated easily by altering the objective function coefficients.

14. a.
NY

17

Chic.

7
6

+1
18

24

18

95
LA
2

32

50

Denver

27

19
13

25
30

Memp

24

14
14

105

St Lou

35

35

45

San Diego
1

-1
b.

MIN

5 X12 + 13 X13 + 45 X15 + 105 X17 + 27 X23 + 19 X24 + 50 X25 + 95 X27 +

Chapter 5 - Network Modeling : S-8

14 X34 + 30 X35 + 32 X36 + 14 X43 + 35 X45 + 24 X46 + 35 X54 + 18 X56 + 25 X57 +

24 X64 + 18 X65 + 17 X67
ST

c.

-X12 - X13 - X15 - X17 = -1

+X12 - X23 - X24 - X25 - X27 = 0
+X13 + X23 + X43- X34 - X35 - X36 = 0
+X24 + X34 + X54 + X64 - X43 - X45 - X46 = 0
+ X15 + X25 + X35 + X45 + X65 - X54 - X56 - X57 = 0
+ X36 + X46 + X56 - X64 - X65 - X67 = 0
+ X17 + X27 + X57 + X67 = +1
Xij 0

See file: Prb5_14.xls

The solution is: X13=X36=X67=1 with a minimum total cost of $62.

15. a.
-700

-$24
Sbo

-$23

Clx

Brk -$25

Mln

ub = 600
lb = 300
-$11

16. a.
b.

c.

$50
$44

Sav

-400

$48
Mln $42

Pry -300

$43

-$0.5
b.
c.

Clx
$45

$0.5
-$25.5
-500

ub = 700
lb = 350
-$10

Hvl

-50

Val -450

See file Prb5_15.xls

Ship 250 from Statesboro to Claxton, 450 from Statesboro from Millen, 450 from Brooklet to
Claxton, 50 from Brooklet to Hinesville, 250 from Claxton to Perry, 450 Claxton to Valdosta, 400
Millen to Savannah, 50 from Millen to Perry. Total Profit = $12,750.
See file: Prb5_16.xls

Chapter 5 - Network Modeling : S-9

17. a.

b.
18.

Supply nodes: 1, 2
Demand node: 6
Transshipment nodes: 3, 4 & 5
See file: Prb5_17.xls
The solution is: X13=20, X24=10, X25=30, X36=40, with a minimum total cost of $2,700.
MAX

X71

ST

+X71 -X12 - X13 - X14 = 0

+X12 -X23 - X25 = 0
+X13 +X23 +X43 -X35 -X36 - X37 = 0
+X14 -X43 -X46 = 0
+X25 +X35 -X57 = 0
+X36 +X46 -X67 = 0
+X37 +X57 +X67 = 0
0 X12 8
0 X13 9
0 X14 7
0 X23 7
0 X25 10
0 X35 8
0 X36 7
0 X37 9
0 X43 6
0 X46 9
0 X57 9
0 X67 11

See file: Prb5_18.xls

The optimal solution is: X12 = 8, X13 = 9, X14 = 7, X25 = 8, X37 = 9, X46 = 7, X57 = 8, X67 = 7.
Maximal flow = 24 tons of sewage per hour.

Chapter 5 - Network Modeling : S-10

19. a.

This is a transportation problem. Note that demand exceeds supply by 20 units.

Stores

Warehouses

+20

+25

+30

+35

-30

4
6
5

-30

6
4
4

-30

b.

3
2

MIN

5 X11 + 4 X12 + 6 X13 + 5 X14

+3 X21 + 6 X22 + 4 X23 + 4 X24
+4 X31 + 3 X32 + 3 X33 + 2 X34

ST

-X11 - X12 - X13 - X14 = -30

-X21 - X22 - X23 - X24 = -30
-X31 - X32 - X33 - X34 = -30
+X11 + X21 + X31 + XD1 +20
+X12 + X22 + X32 + XD2 +25
+X13 + X23+ X33 + XD3 +30
+X14 + X24+ X34 + XD4 +35
Xij 0

c.

See file: Prb5_19.xls

The optimal solution is: X12 = 25, X14 = 5, X21 = 20, X23 = 10, X34 = 30, XD3 = 20.
Minimum total cost = $285.
Note that store 3 receives 20 units less than demanded.

d.

Assign arbitrarily large costs (such as $999) to the arcs representing these flows.
The optimal solution is then: X13 = 30, X21 = 20, X24 = 10, X32 = 5, X34 = 25.
Minimum total cost = $345.
Note that store 2 receives 20 units less than demanded.

20. The LP model is:

MIN

12 X12 + 8 X13 + 15 X14 + 9 X23 + 16 X25 + 6 X34 + 7 X35 + 12 X54

Chapter 5 - Network Modeling : S-11

ST

-X12 - X13 - X14 = -15

-X23 - X25 = -15
+X13 + X23 -X34 -X35 = 0
+X14 + X34 + X54 = 20
+X25 +X35 -X54 = 10
0 Xij 10

The solution is: X13 = 5, X14 = 10, X23 = 5, X25 = 10, X34 = 10
Minimum total cost = $455
See file: Prb5_20.xls
21. a.

Dallas
-1

San Diego
$750

3/2

$487.5

3/6

+1

3/12

+1

3/20

+1

$487.5
$412.5

-1

$562.5
$750
$487.5

3/9

$487.5
$487.5

-1

3/17

$562.5
$750
$562.5

$487.5

-1

3/23

$487.5
$562.5
$750

3/25 +1

Note: each arc represents a possible round trip ticket departing from nodes with the earliest dates (e.g., we
could buy a round trip ticket departing San Diego on March 6, returning to San Diego March 23).
b.
c.

See file: Prb5_21.xls

The optimal solution is to buy the following 4 tickets:
Leave Dallas March 2, returning March 25
Leave Dallas March 9, returning March 20
Leave San Diego March 6, returning March 17
Leave San Diego March 12, returning March 23
Total cost = $1,875. This saves $1,125 off the full-fare price of $3,000.

Chapter 5 - Network Modeling : S-12

22. a.
L.B. = 7.5
($0, 999)

-30

($1.20, 999)

+6

Toulon

+15

Tanke
r

Doha
0

Rotter
dam

($1.40, 999)

($1.35, 999)

($0.35, 22.5)
($0.25, 999)

6
+0

($0.20, 999)

Damietta

4
($0.15, 999)
($0.16, 15)
+0

Suez
2

($0.27, 999)
($0.28, 999)

($0.20, 999)
+0
b.
c.

P.
Said
3

Palerm
o

($0.19, 999)

Legend: (cost, upper bound)

See file: Prb5_22.xls

Total Cost = $25.43 million
Unit Cost
Flow
22.5
7.5
6
1.5
0
7.5
15
0
0
7.5
0
13.5
1.5

L.B
.
0
7.5
0
0
0
0
0
0
0
0
0
0
0

U.B
.
22.5
999
999
999
999
999
15
999
999
999
999
999
999

From
0 Doha
0 Doha
1 Tanker
1 Tanker
1 Tanker
2 Suez
2 Suez
3 Port Said
3 Port Said
3 Port Said
4 Damietta
4 Damietta
4 Damietta

To
2
1
5
6
7
3
4
5
6
7
5
6
7

+9

Suez
Tanker
Rotterdam
Toulon
Palermo
Port Said
Damietta
Rotterdam
Toulon
Palermo
Rotterdam
Toulon
Palermo

($1,000,000s)
$0.35
$0.00
$1.20
$1.40
$1.35
$0.20
$0.16
$0.27
$0.28
$0.19
$0.25
$0.20
$0.15

Chapter 5 - Network Modeling : S-13

23. a.

Atlanta

Los Angeles

-1

+1

-1

+1

-1

+1

-1

+1

-1

+1

-1

+1

-1

+1

Note: each arc represents a possible round trip flight assignment departing from nodes with the earliest
times. See spreadsheet for arc costs.
b.
c.

See file: Prb5_23.xls

Leave
Atlanta at 6 am
Atlanta at 8 am
Los Angeles at 5 am
Los Angeles at 6 am
Atlanta at 4 pm
Los Angeles at noon
Los Angeles at 2 pm

Return flight leaves at

9 am
5 pm
10 am
Noon
7 pm
6 pm
7 pm

Total layover hours = 15, longest layover time = 7 hours.

d.

There is no solution with a smaller longest layover time.

Chapter 5 - Network Modeling : S-14

24. a.
b.
c.
d.

See file: Prb5_24.xls

1-> 3-> 6-> 8-> 10-> 12, Total distance = 1863
1-> 4-> 7-> 6-> 8-> 9-> 12, Total distance = 3280
For the longest route, the solution is now unbounded.

25. a.
A1

1.012

A2

1.012

A3

1.012

A4

1.012

1.012

1.012

A5

1.035

1.012

1.035

B5

A6

1.035

B1
BB

B3

1.035

1.012

1.035

1.012
1.035

P3

-9999

+50
C1

+50

1.11

D1

b.
c.

Minimize the total flow from BB (beginning balance) to A1, B1, C1 and D1.
See file: Prb5_25.xls
Flow
From
To
$94.985 1 BB 3 B1
$178.673 1 BB 4 C1
$46.676 3 B1 8 B3
$48.309 3 B1 9 P3
$178.673 4 C1 11 C4
$48.309 8 B3 14 P5
$189.036 11 C4 16 EB
Total cash required = $273,658

1.035

P5

C4

1.058

1.012

1.058

EB
+200

Chapter 5 - Network Modeling : S-15

26. a.
700

Denver
5

Chicago
2
900
750
800

725
Kansas City
4

San Fran
6

650
Wash, DC
1

625

725

700

Dallas
3

999999

b.
c.

See file: Prb5_26.xls

The system can handle 1,625,000 calls

27. a.
35
15

Cincinnati
5

Boston
1

25

Chicago
7

20

Pittsburgh
3

30

15
20

Memphis
6

15

15

Baltimore
2

25
30
10
Atlanta
4

10
Dallas
8

999

b.
c.
28. a.
b.

See file: Prb5_27.xls

The maximum flow is 55 tons.
See file Prb5_28.xls
7,000,000 packets per minute

Chapter 5 - Network Modeling : S-16

29. a.

L.B = 150

-400

P1
out

P1

17
U.B = 500

18
W1
in

L.B = 150
-300

W1
out

19

L.B = 150
-600
b.

P3

P3
out

17

See file Prb5_29.xls

c.
Ship
250
150
600
0
250
0
150
500
100
500
500
0
500
0
300
100
100

From
1 Plant 1
2 Plant 2
3 Plant 3
4 Plant 1 out
4 Plant 1 out
5 Plant 2 out
5 Plant 2 out
6 Plant 3 out
6 Plant 3 out
7 Whse 1 in
8 Whse 2 in
9 Whse 1 out
9 Whse 1 out
9 Whse 1 out
10 Whse 2 out
10 Whse 2 out
10 Whse 2 out

Total cost: $20,150.

To
4 Plant 1 out
5 Plant 2 out
6 Plant 3 out
7 Whse 1 in
8 Whse 2 in
7 Whse 1 in
8 Whse 2 in
7 Whse 1 in
8 Whse 2 in
9 Whse 1 out
10 Whse 2 out
11 Dist. 1
12 Dist. 2
13 Dist. 3
11 Dist. 1
12 Dist. 2
13 Dist. 3

600

D3

100

W2
out

15

D2

U.B = 500
W2
in

300

21
P2
out

P2

D1

Chapter 5 - Network Modeling : S-17

30.

MAX
ST

X71 + X81
+X71 +X81 -X12 - X13 - X15 = 0
+X12 -X24 - X25 = 0
+X13 -X35 -X36 = 0
+X24 +X54 -X45 -X47 = 0
+X15 +X25 +X35 +X45 +X65 -X54 -X56-X57-X58= 0
+X36 +X56 -X65 -X68 = 0
+X47 +X57 -X71 = 0
+X58 +X68 -X81 = 0
0 X12 100
0 X13 100
0 X15 200
0 X24 100
0 X25 150
0 X35 150
0 X36 150
0 X45 100
0 X47 150
0 X54 100
0 X56 100
0 X57 100
0 X58 100
0 X65 100
0 X68 150
0 X71
0 X81

b. The optimal solution is: X15 = 200, X24 = 100, X25 = 50, X36 = 150, X47 = 150, X54 = 50, X57 = 100,
X58 = 100, X68 = 150, X81 = 200, X72 = 100, X82 = 50, X73 = 150.
Maximum flow = 500 bags per minute.
See file: Prb5_30.xls
31. a.

Chapter 5 - Network Modeling : S-18

Albany
3
2
4

Savannah

Macon
2

Atlanta

2
2
Athens
4

b.

MAX
ST

X51
+X51 -X12 = 0
+X12 - X23 -X24 - X25 = 0
+X23 -X35 = 0
+X24 -X45 = 0
+X25 +X35 +X45 -X51= 0
0 X12 5
0 X23 4
0 X24 2
0 X25 2
0 X35 2
0 X45 2
0 X51

c.

The optimal solution is: X12 = 5, X23 = 2, X24 = 2, X25 = 1, X35 = 2, X45 = 2, X51 = 5
Maximum flow = 5 sets of connecting flight plans.
See file: Prb5_31.xls

32. The optimal solution is: X14=X49=X9,12= 1, Minimum cost = $8 million

See file: Prb5_32.xls
33.
Iteration Node Added
1
1
2
5
3
4
4
3
5
7
6
6
7
2
8
8

Cost
$0
$85
$20
$25
$30
$20
$30
$35

Chapter 5 - Network Modeling : S-19

9
Total Cost

$25
$270

Chapter 5 - Network Modeling : S-20

34. a.

legend: (min flow, max flow)

$1
(350, 500)

Beg. Inv.
0

$1
(0,500)
$0
(0, 500)
$1
(0,500)

DC Tuesday
7
$0
(300, 500)

Monday
1

(400, 500)
$0

$0
(0, 500)

Tuesday
2

(0,200)
$0
(0, 500)

$2
(0,200)

DC Monday
6

$0
(400, 500)

$2

Wednesday
3

(250, 500)
$0
(0,500)
$1

b. See file: Prb5_34.xls, Total cost = $2,350

DC Thus
9

$0
(0, 500)

(0,200)

DC Wed.
8

Thursday
4

$2
(0,500)
$1

(0,200)
$0
(0, 500)

$2

Friday
5

Chapter 5 - Network Modeling : S-21

Case 5-1: Hamilton & Jacobs

a. The basic problem looks like this

This is a generalized network flow model. The exchange rates and transaction costs comprise the
coefficients that appear on each arc (and are calculated in the spreadsheet). The key is to realize that
you want to maximize the amount that makes it into the bank in US currency.
b.
c.
d.
e.

See file: Case5_1.xls

See file: Case5_1.xls. Total US dollars = $ 42,234,228
Total US dollars = $ 42,211,654
See file: Case5_1.xls. Total US dollars = $ 38,367,337

Case 5-2: Old Dominion Energy

See file: Case5_2.xls
a. Katy to Leidy = 70,000 cf; Katy to Juliet = 70,000 cf
b. Leidy = 35,000 cf, Joliet = 35,000 cf, Profit = $213.5
c. No.
d. Increase the capacity from Katy to Carthage would be the easiest way to meet more of the demand at
Joliet (since the pipe from Carthage to Joliet is not at full capacity). Additionally, increasing the
capacity from Carthage to Lebanon would allow Bruce to satisfy more of the demand at Leidy (since
the pipe from Lebanon to Leidy is not at full capacity).

Case 5-3: US Express

Chapter 5 - Network Modeling : S-22

1.

F1

-999

D1

UB=31
LB=21

$0.92

Loss=2.20+0.60*G4

-999
F4

UB=31
LB=16

T1

T4

Loss=3.2+0.45*G1

$1.02

D4

Loss=1.80+0.35*G3

D2
UB=20
LB=7

T3
UB=31
LB=18

$0.85

F2
-999

T2
D3

Loss=2.25+0.65*G2
$0.87

F3

-999

Di = departure point i
Fi = fuel depot at departure point i
Ti = take off from departure point i
Gi = fuel on board when taking off from departure point I
2.
3.

See file Case5_3.xls

Buy 16,800 at departure point 1, 17,328 from departure point 3, 6,100 from departure point 4.
Total cost = $36,753.

Chapter 5 - Network Modeling : S-23

Case 5-4: The Major Electric Corporation

1.
-30

Hong Kong
Factory
1

$375
(20,30)

$2
(5,20)

Hong Kong
Dock
4

-40

Korea
Factory
2

(25,40)

$1.8
(10,30)

San Fran
Dock
7

(20,65)

$1.0
(5,15)

Korea
Dock
5

Singapore
Factory
3

Singapore
Dock
6

$1.2
(10,18)

$1.0
(5,14)

+20

Baltimore
13

+30

Houston
14

+25

$1.2
(4,6)

San Diego
Dock
8

$2.4
(5,25)

-30

Denver
12

$0.85
(6,12)

San Fran
Warehouse
9

(10,30)
$2.1

$365
(15,30)

+10

$1.1
(3,7)

(5,20)
$2.3

$390

Pittsburgh
11

(5,15)
$2.2

2. See file: Case5_4.xls, Total cost = $32,218,300

(30,70)

San Diego
Warehouse
10

$1.1
(5,20)
$0.9
(10,20)