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Distribution X Coursework 2021

The document describes a distribution problem for a company with two factories and four depots that supply six customers. It provides distribution costs between suppliers and customers, monthly capacities for factories and depots, and monthly requirements for customers. The task is to formulate this as a mathematical programming model in Excel to minimize overall costs while meeting all requirements.

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23 views2 pages

Distribution X Coursework 2021

The document describes a distribution problem for a company with two factories and four depots that supply six customers. It provides distribution costs between suppliers and customers, monthly capacities for factories and depots, and monthly requirements for customers. The task is to formulate this as a mathematical programming model in Excel to minimize overall costs while meeting all requirements.

Uploaded by

Aamir
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Distribution at company X

The problem:

Company X has two factories, one situated at Liverpool and one at Brighton. In addition
it has four depots with storage facilities at Newcastle, Birmingham, London and Exeter.
The company sells its product to six customers C1, C2… C6.
Customers can be supplied either from a depot or from the factory direct (see
schematic figure 1).

FIGURE 1

C1

NEWCASTLE
DEPOT
C2
LIVERPOOL
FACTORY
BIRMINGHAM
C3
DEPOT

LONDON C4
DEPOT
BRIGHTON
FACTORY C5

EXETER
DEPOT
C6

The distribution costs (which are borne by the company) are known and are given in
Table 1 (in £ per ton delivered)

Each factory has a monthly capacity given below which cannot be exceeded:
Liverpool 150000 tons
Brighton 200000 tons

TABLE 1 distribution costs in £/ton


Supplier
Liverpoo Brighto Newcastl Birmingham London Exete
Supplied to l n e depot depot r
factory factory depot depot
Depots
Newcastle 0.5 -
Birmingham 0.5 0.3
London 1.0 0.5
Exeter 0.2 0.2
Customers
C1 1.0 2.0 - 1.0 - -
C2 - - 1.5 0.5 1.5 -
C3 1.5 - 0.5 0.5 2.0 0.2
C4 2.0 - 1.5 1.0 - 1.5
C5 - - - 0.5 0.5 0.5
C6 1.0 - 1.0 - 1.5 1.5
(Note: A dash indicates the impossibility of certain suppliers for certain depots or
customers.)

Each depot has a maximum monthly throughput given below which cannot be exceeded:
Newcastle 70000 tons
Birmingham 50000 tons
London 100000 tons
Exeter 40000 tons
Each customer has a monthly requirement given below which must be met:
C1 50000 tons
C2 10000 tons
C3 40000 tons
C4 35000 tons
C5 60000 tons
C6 20000 tons
Your task:
(1) Formulate the above problem as a mathematical programming model. Show
clearly, the formulation of all variables, constraints and of the objective
function. Explain all steps in your model..
(10MARKS)
(2) Solve the model in EXCEL in order to minimise the overall cost and achieve
maximum service. In your report, include, in an appendix, copies of the
spreadsheet model showing all answer reports and briefly discuss the solution
from a decision-making point of view.
(12 MARKS)

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