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Ops Mgt Linear Problem

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Ops Mgt Linear Problem Powered By Docstoc
					A large firm is contemplating construction of a new manufacturing facility. The two leading
locations are Toledo and Cincinnati. The new factory would have a supply capacity of
160 units per week. Transportation costs from each potential location and existing manufacturing
facilities locations 1, 2, and 3 to markets A, B, and C are shown in the following tables.
Determine which new location would provide lower total transportation cost.
From Toledo to Cost per unit             From Cincinnati to Cost per unit
A......              $18                     A.....              . . . . $7
B....          .     .8                      B......               . . . 17
C....         .     . 13                     C......               . . . 13




                                          Supply
                A       B      C          units
       1       10      14      10             210
       2       12      17      20             140
       3       11      11      12               50

Demand
units          220       220        220




Set up this problem as a linear programming problem and find the optimal solution using Excel's
Solver. Your spreadsheet file should have two worksheets in it named "Toledo" and "Cincinnati",
respectively.

				
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posted:12/25/2011
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