Each year, Data Corporal produces up to 10,000 computers in Boston and up to 6000 computers in Charlotte. There are customers in Los Angeles, New York, and Seattle who must receive 5300, 6700, and 3300 computers, respectively. Producing a computer costs $150 in Boston and $175 in Charlotte. Computers are transported by plane and can be sent through Chicago. The costs of sending a computer between pairs of cities are shown in the file P05_58.xlsx. a. Determine how to minimize the total (production plus shipping) cost of meeting Data Corporal’s annual demand. Why doesn’t it make sense to ship any computers through Chicago? b. Modify the model so that no more than 3000 computers can be shipped between any two cities, and find the optimal solution to this modified model. Why are computers now shipped through Chicago?

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Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659
BuyFind

Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659

Solutions

Chapter
Section
Chapter 5, Problem 58P
Textbook Problem

Each year, Data Corporal produces up to 10,000 computers in Boston and up to 6000 computers in Charlotte. There are customers in Los Angeles, New York, and Seattle who must receive 5300, 6700, and 3300 computers, respectively. Producing a computer costs $150 in Boston and $175 in Charlotte. Computers are transported by plane and can be sent through Chicago. The costs of sending a computer between pairs of cities are shown in the file P05_58.xlsx.

  1. a. Determine how to minimize the total (production plus shipping) cost of meeting Data Corporal’s annual demand. Why doesn’t it make sense to ship any computers through Chicago?
  2. b. Modify the model so that no more than 3000 computers can be shipped between any two cities, and find the optimal solution to this modified model. Why are computers now shipped through Chicago?

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Chapter 5 Solutions

Practical Management Science
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