The case deals about the process of selecting the telecommunication carriers in order to obtain the volume discounts. The operators of mobile phone started concentrating on cutting their cost rather than concentrating on market share and growth. The inputs and the decision variables that can be used were explained in the case. To develop: An optimization model that would help the firm to be cost-efficient.

Question

A garment producer has three warehouses W1, W2, and W3. These warehouses have 30, 60, and 70 units of their items. Their five retail showrooms at R1, R2, R3, R4, and R5 need 35, 20, 40, 28, and 12 units respectively. Determine the optimum distribution cost. The transport cost in ($ per unit) between every warehouse and every retail showroom is presented in the below table: Warehouse Retail Showroom R1 R2 R3 R4 R5 W1 55 30 40 50 40 W2 35 30 100 45 60 W3 40 60 95 35 30

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Chapter 6, Problem 2C

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The case deals about the process of selecting the telecommunication carriers in order to obtain the volume discounts. The operators of mobile phone started concentrating on cutting their cost rather than concentrating on market share and growth. The inputs and the decision variables that can be used were explained in the case.

To develop: An optimization model that would help the firm to be cost-efficient.

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A garment producer has three warehouses W1, W2, and W3. These warehouses have 30, 60, and 70 units of their items. Their five retail showrooms at R1, R2, R3, R4, and R5 need 35, 20, 40, 28, and 12 units respectively. Determine the optimum distribution cost. The transport cost in ($ per unit) between every warehouse and every retail showroom is presented in the below table: Warehouse Retail Showroom R1 R2 R3 R4 R5 W1 55 30 40 50 40 W2 35 30 100 45 60 W3 40 60 95 35 30

The Winston Company has four distribution centers (A, B, C, and D) that require 40,000, 60,000, 30,000, and 50,000 gallons of de-ionized water, respectively, per month for cleaning its long-haul trucks. Three de-ionized water wholesalers (1, 2, and 3) indicated their willingness to supply as many as 50,000, 70,000, and 60,000 gallons, respectively. The total cost (shipping plus price) of delivering 1,000 gallons of de-ionized water from each wholesaler to each distribution center is shown in the following table: Distribution Center Wholesaler A B C D 1 $1.30 $1.40 $1.80 $1.60 2 $1.30 $1.50 $1.80 $1.60 3 $1.60 $1.40 $1.70 $1.50 Determine the optimal solution. Show that all capacities have been exhausted and that all demands can be met with this solution. (use below table format, numbers are generic, erase them) Distribution Center Supply Wholesaler A B C D 1 xx xx x x 400-200-150-50=0 2…

The Winston Company has four distribution centers (A, B, C, and D) that require 40,000, 60,000, 30,000, and 50,000 gallons of de-ionized water, respectively, per month for cleaning their long-haul trucks. Three de-ionized water wholesalers (1, 2, and 3) indicated their willingness to supply as many as 50,000, 70,000, and 60,000 gallons, respectively. The total cost (shipping plus price) of delivering 1,000 gallons of de-ionized water from each wholesaler to each distribution center is shown in the following table: Distribution Center Wholesaler A B C D 1 $1.30 $1.40 $1.80 $1.60 2 $1.30 $1.50 $1.80 $1.60 3 $1.60 $1.40 $1.70 $1.50 a. Determine the optimal solution. Show that all capacities have been exhausted and that all demands can be met with this solution. b. What is the total cost of the solution?