Executive Summar38b

# Executive Summar38b - Spread Sheet was use to input data...

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Executive Summary Problem 12-38 b A. Problem Description This problem is to figure out the best possible shipment schedule that will have the lowest cost. The company WaySafe has 3 regional centers and 11 district warehouses. The data given is shown is kilotons so to find out the cost the kilotons should be converted to tons. This is because the shipping cost is in dollar per ton per mile. This problem also states that the warehouse 8 is closed, and the demand of the warehouse 8 is moved to warehouse 7. Therefore the demand for the warehouse 7 has increase to 316 kilotons or 316000 tons. B. List of Methodologies / Tools Used Linear programming was used to apply the basic knowledge of the process in solving the problem. Solver program was use to find the optimal solution of the shipping schedule. This program was very useful because by inputting all the constraints, regulations and other data, the problem could be solved even after the change to the data is made.
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Unformatted text preview: Spread Sheet was use to input data and organize the cost and display the process. Also the spread sheet allows the process to be clearer and easily compared. C. Principal Results With all the restraints applied, the total shipping cost came out to \$27,079,000.00. All of the warehouses have been satisfied with the demand that they requested. For regional center C1, out of the 500,000 tons, 486,000 tons have been shipped out and 14,000 tons have not been shipped to the warehouse. For regional center C2, out of the 750,000 tons, 513,000 tons have been shipped out and 237,000 tons have not been shipped to the warehouse. For regional center C3, out of the 400,000 tons, 219,000 tons have been shipped out and 181,000 tons have not been shipped to the warehouse. 1). Does the total increase or decrease? The total has decreased. \$28,323,500.00 - \$27,079,000.00 = \$1244500.00 2). Which centers now ship to W7? Only regional center 2 ships to warehouse 7....
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