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# PROBLEM

Problem 2

Foster Generators transports products from three plants to four distribution centers. Foster
Generator has plants located in Cleveland, Ohio; Bedford, Indiana; York, Pennsylvania.
Production capacities over the next three month planning period for one particular type of
generator are as follows:

1 Cleveland 5000
2 Bedford 6000
3 York 2500
------
13500

## Transportation cost per unit for the Foster Generator

-------------------------------------------------------------------------------------------------
Origin Boston Chicago St. Louis Lexington

Cleveland 3 2 7 6
Bedford 7 5 2 3
York 2 5 4 5
-------------------------------------------------------------------------------------------------

The firm distributes its generator through four regional distribution centers located in
Boston, Chicago, St Louis, and Lexington; the three month demand forecast for the
distribution center is as follows:

## Destination Distribution Center Three month Demand Forecast

(units)

1 Boston 6000
2 Chicago 4000
3 St. Louis 2000
4 Lexington 1500
------
13500

Management must decide how much of its production should be shipped from each plant
to each distribution center.
Prob 2a

Suppose that York-Boston route had a capacity of 1000 units because of limited space
availability on its normal mode of transportation and Bradford-Chicago delivery required
at least 2000 units. How will the optimal solution change?
Problem 3

## Ryan is an electronics company with production facilities in Denver and Atlanta.

Components produced at either facilities may be shipped to either of the firm’s regional
warehouses, which are located in Kansas city and Louisville. From the regional
warehouses, the firm supplies the retail outlets in Detroit, Miami, Dallas, and New
Orleans. The transportation cost per unit for each distribution route is shown below:

Warehouse

Denver 2 3
Atlanta 3 1

Retail Outlet

## Warehouse Detroit Miami Dallas New Orleans

Kansas City 2 6 3 6
Louisville 4 4 6 5

Problem 3a

Suppose that it is possible to ship directly from Atlanta to New Orleans at \$4 per unit and
from Dallas to New Orleans at \$1 per unit. What will be the new solution?
Problem 4 (Class Exercise)

Adirondack paper Mills has plants in Augusta, Maine, and Tupper Lake, New York.
Warehouse facilities are located in Albany, New York, and Portsmouth, New Hampshire.
Distributors are located in Boston, New York, and Philadelphia. The plant capacities and
distributor demands for the next month are as follows:

## Augusta 300 units Boston 150

Tupper Lake 100 units New York 100

The unit transportation costs (\$) for shipments from the two plants to the two warehouses
and from the two warehouses to the three distributors are as follows:

Warehouse

Augusta 7 5
Tupper Lake 3 4

Distributor

## Warehouse Boston New York Philadelphia

Albany 8 5 7
Portsmouth 5 6 10

## a. Draw the network representation of the Adirondack Paper Mills problem

b. Formulate the Adirondack Paper Mills problem as a linear programming problem
c. Determine the minimum cost shipping schedule for the problem.
Problem 5a

A restaurant chain purchases ingredients from four different food suppliers. The
company wants to construct a new central distribution center to process and package the
ingredients before shipping them to various restaurants. The supplier transports the
ingredients items in 40 foot truck trailers, each with a capacity of 38,000 lbs. The
location of four suppliers, A, B, C, D and the annual number of trailer loads that will be
transported to the distribution center are given below:

A B C D

## Xa = 200 Xb = 100 Xc = 250 Xd=500

Ya = 200 Yb=500 Yc=600 Yd=300

Wa = 75 Wb = 105 Wc = 135 Wd = 60

Problem 5b

The restaurant wants to evaluate three different sites it has identified for its new
distribution center relative to four suppliers. The coordinates of the three sites are as
follows: