Executive Summar 38a

# Executive Summar 38a - made. Spread Sheet was use to input...

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Executive Summary Problem 12-38 a 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 asks that the capacity of the regional center 1 to increase by 100 kilotons or 100000 tons, and the regional center 1’s cost decrease by 10% in shipping the products to the warehouses. 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
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Unformatted text preview: made. 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 \$27,437,450.00. All of the warehouses have been satisfied with the demand that they requested. For regional center C1, out of the 600,000 tons, 333,000 tons have been shipped out and 267,000 tons have not been shipped to the warehouse. For regional center C2, out of the 750,000 tons, 485,000 tons have been shipped out and 265,000 tons have not been shipped to the warehouse. For regional center C3, out of the 400,000 tons, 400,000 tons have been shipped out and none have left unshipped. 1). By how much does total cost decrease? 28,323,500.00 - 27,437,450.00 = \$886,050 2). By how much does the volume shipped out of C1 increase? 486,000 – 333,000 = 153,000 The volume shipped out of C1 decreased...
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## This note was uploaded on 09/08/2010 for the course BUS 190 at San Jose State.

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