A company has a total of 3 factories to produce steel and iron. Every month, the company must meet the following demands: 3200 tonnes of steel and 1000 tonnes of Iron. Each factory has a different shipping cost per tonne (£/tonne) for each product as shown in the table below: Factory 1 2 3 Steel 200 800 500 The warehouses in Factory 1, Factory 2 and Factory 3 can store 2000 tonnes, 1500 tonnes and 2500 tonnes of products, respectively. The company is seeking for a solution to minimise the shipping cost. Iron 500 400 1000 a) Based on the table above, determine the optimal monthly assignment plan for the factory. That is, how many tonnes each factory needs to be shipped to fulfil the demand. b) Suppose Factory 3 will not be available during the next few months. Keeping the same demand, is the company able to fulfil the demands? What would be the revised assignment plan to ensure demand is fulfilled? 1 2 3 c) The cost of raw materials in each factory is shown in the table below. Change the company objective function to minimize all costs and find the optimal assignment plan. Does the new solution change from the base case? If yes, how so? Factory Steel raw material Iron raw material cost cost 100 120 130 50 70 45
A company has a total of 3 factories to produce steel and iron. Every month, the company must meet the following demands: 3200 tonnes of steel and 1000 tonnes of Iron. Each factory has a different shipping cost per tonne (£/tonne) for each product as shown in the table below: Factory 1 2 3 Steel 200 800 500 The warehouses in Factory 1, Factory 2 and Factory 3 can store 2000 tonnes, 1500 tonnes and 2500 tonnes of products, respectively. The company is seeking for a solution to minimise the shipping cost. Iron 500 400 1000 a) Based on the table above, determine the optimal monthly assignment plan for the factory. That is, how many tonnes each factory needs to be shipped to fulfil the demand. b) Suppose Factory 3 will not be available during the next few months. Keeping the same demand, is the company able to fulfil the demands? What would be the revised assignment plan to ensure demand is fulfilled? 1 2 3 c) The cost of raw materials in each factory is shown in the table below. Change the company objective function to minimize all costs and find the optimal assignment plan. Does the new solution change from the base case? If yes, how so? Factory Steel raw material Iron raw material cost cost 100 120 130 50 70 45
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section: Chapter Questions
Problem 103P
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