University of Management & Technology

Supply Chain Modelling - SM622 - Section H

Class Activity
GoPlay.com - Case Solution

Submitted By:
Faraz Ahmad Khan
Aneeq ur Rehman
Arif Luqman
Aiza Fatima
Umer Naseem
Muhammad Hamza

Submitted To:
Sir Kamran Rashid

Dated: 16-04-2020
 SMALL WAREHOUSE LARGE
Fixed cost Variable cost Fixed cost
Location
($/year) ($/unit flow) ($/year)
Seattle 300,000 0.24 500,000
Denver 250,000 0.24 420,000
Springfield 220,000 0.24 375,000
Atlanta 220,000 0.24 375,000
Philadelphia 240,000 0.24 400,000

Upper Lower
Northwest Southwest
Midwest Midwest
Seattle 0.5 0.625 0.875 1.075
Denver 0.625 0.625 0.7 0.75
Springfield 0.9 0.875 0.675 0.625
Atlanta 1.05 1 0.8 0.625
Philadelphia 1.125 1.275 0.75 0.875
Demand 1,866,240 1,516,320 2,624,400 1,749,600

Upper Lower
Northwest Southwest
Midwest Midwest
Seattle 1866240 1516320 0 0
Denver 0 0 0 0
Springfield 0 0 2624400 770200
Atlanta 0 0 0 979400
Philadelphia 0 0 0 0
Demand 1,866,240 1,516,320 2,624,400 1,749,600
Received 1866240 1516320 2624400 1749600
Unmet Demand 0 0 0 0

TOTAL $ 9,986,043.00
Costs
Fixed $ 1,335,000.00
Variable $ 2,414,448.00
Transportation $ 6,236,595.00
Inventory
WAREHOUSE
Variable cost
($/unit flow)
0.24
0.24
0.24
0.24
0.24

Small Large
Northeast Southeast
Supply Supply
1.25 1.375 2000000 4000000
1.025 1.175 2000000 4000000
0.75 0.875 2000000 4000000
0.85 0.675 2000000 4000000
0.625 1.075 2000000 4000000
1,283,040 1,020,600

Small Large
Northeast Southeast Supply Sent Excess
(Y/N) (Y/N)
0 0 0 1 4000000 3382560 617440
0 0 0 0 0 0 0
0 0 0 1 4000000 3394600 605400
0 1020600 1 0 2000000 2000000 0
1283040 0 1 0 2000000 1283040 716960
1,283,040 1,020,600
1283040 1020600 Total Sent 10060200
0 0
Microsoft Excel 16.0 Answer Report
Worksheet: [Class Activity.xlsx]Working Sheet
Report Created: 16/04/2020 12:23:19 PM
Result: Solver found an integer solution within tolerance. All Constraints are satisfied.
Solver Engine
Engine: Simplex LP
Solution Time: 0.125 Seconds.
Iterations: 6 Subproblems: 50
Solver Options
Max Time Unlimited, Iterations Unlimited, Precision 0.000001, Use Automatic Scaling
Max Subproblems Unlimited, Max Integer Sols Unlimited, Integer Tolerance 1%, Assume NonNegative

Objective Cell (Min)

Variable Cells
Cell Name Original Value Final Value Integer
$C$22 Seattle Northwest 1866240 1866240 Contin
$D$22 Seattle Southwest 1516320 1516320 Contin
$E$22 Seattle Upper Midwest 0 0 Contin
$F$22 Seattle Lower Midwest 0 0 Contin
$G$22 Seattle Northeast 0 0 Contin
$H$22 Seattle Southeast 0 0 Contin
$I$22 Seattle Small (Y/N) 0 0 Binary
$J$22 Seattle Large (Y/N) 1 1 Binary
$C$23 Denver Northwest 0 0 Contin
$D$23 Denver Southwest 0 0 Contin
$E$23 Denver Upper Midwest 0 0 Contin
$F$23 Denver Lower Midwest 0 0 Contin
$G$23 Denver Northeast 0 0 Contin
$H$23 Denver Southeast 0 0 Contin
$I$23 Denver Small (Y/N) 0 0 Binary
$J$23 Denver Large (Y/N) 0 0 Binary
$C$24 Springfield Northwest 0 0 Contin
$D$24 Springfield Southwest 0 0 Contin
$E$24 Springfield Upper Midwest 2624400 2624400 Contin
$F$24 Springfield Lower Midwest 770200 770200 Contin
$G$24 Springfield Northeast 0 0 Contin
$H$24 Springfield Southeast 0 0 Contin
$I$24 Springfield Small (Y/N) 0 0 Binary
$J$24 Springfield Large (Y/N) 1 1 Binary
$C$25 Atlanta Northwest 0 0 Contin
$D$25 Atlanta Southwest 0 0 Contin
$E$25 Atlanta Upper Midwest 0 0 Contin
 $F$25 Atlanta Lower Midwest 979400 979400 Contin
$G$25 Atlanta Northeast 0 0 Contin
$H$25 Atlanta Southeast 1020600 1020600 Contin
$I$25 Atlanta Small (Y/N) 1 1 Binary
$J$25 Atlanta Large (Y/N) 0 0 Binary
$C$26 Philadelphia Northwest 0 0 Contin
$D$26 Philadelphia Southwest 0 0 Contin
$E$26 Philadelphia Upper Midwest 0 0 Contin
$F$26 Philadelphia Lower Midwest 0 0 Contin
$G$26 Philadelphia Northeast 1283040 1283040 Contin
$H$26 Philadelphia Southeast 0 0 Contin
$I$26 Philadelphia Small (Y/N) 1 1 Binary
$J$26 Philadelphia Large (Y/N) 0 0 Binary

Constraints
Cell Name Cell Value Formula Status Slack
$C$29 Unmet Demand Northwest 0 $C$29=0 Binding 0
$D$29 Unmet Demand Southwest 0 $D$29=0 Binding 0
$E$29 Unmet Demand Upper Midwest 0 $E$29=0 Binding 0
$F$29 Unmet Demand Lower Midwest 0 $F$29=0 Binding 0
$G$29 Unmet Demand Northeast 0 $G$29=0 Binding 0
$H$29 Unmet Demand Southeast 0 $H$29=0 Binding 0
$M$22 Seattle Excess 617440 $M$22>=0 Not Binding 617440
$M$23 Denver Excess 0 $M$23>=0 Binding 0
$M$24 Springfield Excess 605400 $M$24>=0 Not Binding 605400
$M$25 Atlanta Excess 0 $M$25>=0 Binding 0
$M$26 Philadelphia Excess 716960 $M$26>=0 Not Binding 716960
$I$22:$J$26=Binary