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Transshipment Problem

The document presents a linear programming problem to minimize the total shipping costs of transporting products from plants to warehouses and then from warehouses to customers to meet demand. The problem data includes plant capacities, shipping costs between plants and warehouses, customer demands, and shipping costs between warehouses and customers. The linear programming model is formulated to minimize the total shipping costs subject to capacity and demand constraints. The problem is solved using Excel Solver and the optimal solution shows the distribution routes and total minimum shipping cost of $11,850.

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Ira Grace De Castro
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872 views3 pages

Transshipment Problem

The document presents a linear programming problem to minimize the total shipping costs of transporting products from plants to warehouses and then from warehouses to customers to meet demand. The problem data includes plant capacities, shipping costs between plants and warehouses, customer demands, and shipping costs between warehouses and customers. The linear programming model is formulated to minimize the total shipping costs subject to capacity and demand constraints. The problem is solved using Excel Solver and the optimal solution shows the distribution routes and total minimum shipping cost of $11,850.

Uploaded by

Ira Grace De Castro
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Ira Grace B. De Castro.

ACN1 | CAED101

TRANSSHIPMENT PROBLEM

Table 1. Plant Capacities and Shipping Costs per Unit from Plant to Warehouse
Warehouse
Plant 1 2 Capacity
1 4 7 450
2 8 5 600
3 5 6 380

Table 2. Customer Demand and Shipping Costs per Unit from Warehouse to Customer
Warehouse
Warehouse 1 2 3 4
1 6 4 8 4
2 3 6 7 7
Demand 300 300 300 400

Objective Function
Min 4x14 + 7x15 + 8x24 + 5x25 + 5x34 + 6x35 + 6x46 + 4x47 + 8x48 + 4x49 + 3x56 + 6x57 + 7x58 + 7x59

s.t.
x14 + x15 ≤ 450 Plant 1 Capacity
x24 + x25 ≤ 600 Plant 2 Capacity
x34 + x35 ≤ 380 Plant 3 Capacity
x46 + x47 + x48 + x49 = x14 + x24 + x34 Units Shipped Out and Into Warehouse 1
x56 + x57 + x58 + x59 = x15 + x25 + x35 Units Shipped Out and Into Warehouse 2
x46 + x56 = 300 Customer 1 Demand
x47 + x57 = 300 Customer 2 Demand
x48 + x58 = 300 Customer 3 Demand
x49 + x59 = 400 Customer 4 Demand
xij ≥ 0 for all i and j

Fig.1. Linear Programming Model


Fig.2. Network Presentation
EXCEL SOLVER – LINEAR PROGRAMMING

Variables Objective
New Value Minimize 11850
x 14 450
x 15 0 Constraints
x 24 0 No. Equality
x 25 600 1 450 ≤ 450
x 34 250 2 600 ≤ 600
x 35 0 3 250 ≤ 380
x 46 0 4 700 = 700
x 47 300 5 600 = 600
x 48 0 6 300 = 300
x 49 400 7 300 = 300
x 56 300 8 300 = 300
x 57 0 9 400 = 400
x 58 300
x 59 0

FINDINGS

Distribution Routes
From To Units Shipped Cost Per Unit ($) Total Cost (S)
Units shipped from plant to warehouse
Plant 1 Warehouse 1 450 4 1800
Plant 2 Warehouse 2 600 5 3000
Plant 3 Warehouse 1 250 5 1250
Units shipped out the warehouse to customer
Warehouse 1 Customer 2 300 4 1200
Warehouse 1 Customer 4 400 4 1600
Warehouse 2 Customer 1 300 3 900
Warehouse 2 Customer 3 300 7 2100
Total Cost 11850

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