A seafood distribution company specializes in delivering fresh lobsters from their harvesting sites to various restaurants across the coastline. The company operates a fleet of sailing vessels, each with different capacities and operational costs. Due to the perishable nature of lobsters, the company aims to optimize its distribution network to minimize total costs while meeting the demand of each restaurant. Given Data:   Sailing Vessels (with capacities and fixed operational costs):       Vessel 1 (V1): Capacity = 300 kg, Fixed Cost = $1,000     Vessel 2 (V2): Capacity = 200 kg, Fixed Cost = $900     Vessel 3 (V3): Capacity = 400 kg, Fixed Cost = $1,200     Vessel 4 (V4): Capacity = 100 kg, Fixed Cost = $600     Restaurants (with lobster demand):       Restaurant A: Demand = 250 kg     Restaurant B: Demand = 150 kg     Restaurant C: Demand = 300 kg     Restaurant D: Demand = 100 kg   Transportation Costs (per kg) from Harvesting Sites to Restaurants:                Restaurant A      Restaurant B      Restaurant C      Restaurant D V1          $2           $3           $2.5       $4 V2          $3           $2.5       $3.5       $2 V3          $2           $3.5       $2           $3 V3          $1           $2.5       $2           $2   Objective:   Determine which sailing vessels to use and the optimal way to distribute lobsters from the harvesting sites to the restaurants to minimize the total costs, comprising both fixed operational costs and variable transportation costs.   Carefully write the mathematical formulations including the constraints.  Using Excel Solver, Minimize the total cost of the lobster supply chain.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section6.5: Set-covering And Location-assignment Models
Problem 34P
icon
Related questions
Question
  • A seafood distribution company specializes in delivering fresh lobsters from their harvesting sites to various restaurants across the coastline. The company operates a fleet of sailing vessels, each with different capacities and operational costs. Due to the perishable nature of lobsters, the company aims to optimize its distribution network to minimize total costs while meeting the demand of each restaurant.

Given Data:

 

Sailing Vessels (with capacities and fixed operational costs):

 

    Vessel 1 (V1): Capacity = 300 kg, Fixed Cost = $1,000

    Vessel 2 (V2): Capacity = 200 kg, Fixed Cost = $900

    Vessel 3 (V3): Capacity = 400 kg, Fixed Cost = $1,200

    Vessel 4 (V4): Capacity = 100 kg, Fixed Cost = $600

 

 

Restaurants (with lobster demand):

 

    Restaurant A: Demand = 250 kg

    Restaurant B: Demand = 150 kg

    Restaurant C: Demand = 300 kg

    Restaurant D: Demand = 100 kg

 

Transportation Costs (per kg) from Harvesting Sites to Restaurants:

               Restaurant A      Restaurant B      Restaurant C      Restaurant D

V1          $2           $3           $2.5       $4

V2          $3           $2.5       $3.5       $2

V3          $2           $3.5       $2           $3

V3          $1           $2.5       $2           $2

 

Objective:

 

Determine which sailing vessels to use and the optimal way to distribute lobsters from the harvesting sites to the restaurants to minimize the total costs, comprising both fixed operational costs and variable transportation costs.

 

  • Carefully write the mathematical formulations including the constraints. 
  • Using Excel Solver, Minimize the total cost of the lobster supply chain. 
Expert Solution
steps

Step by step

Solved in 5 steps with 9 images

Blurred answer
Knowledge Booster
Inventory management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
MARKETING 2018
MARKETING 2018
Marketing
ISBN:
9780357033753
Author:
Pride
Publisher:
CENGAGE L