MIE376 Lec 10 - NP Slides(1).page05

MIE376 Lec 10 - NP Slides(1).page05 - $300/unit. From DC a...

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5 Example A distribution company produces its product at two different factories ( 50 units at F1 and 40 units at F2) to meet a demand for its product at its two warehouses (30 units at W1, and 60 units at W2) , sometimes via a distribution center (DC). From F1 it costs $900/unit to ship to W1, $400/unit to ship to DC , and $200/unit (up to 10 units) to ship to F2. From F2 the units can only be shipped to DC at a cost of
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Unformatted text preview: $300/unit. From DC a maximum of 80 units can be shipped to W2 at a cost of $100/unit. In addition units can be shipped from W1 to W2 at $300/unit, and from W2 to W1 at $200/unit. How should the goods be shipped to minimize transportation cost. 0/10/200 F1 DC F2 W2 W1 50 40-60-30 0/ /900 0/ /400 0/ / 200 0/80/100 0/ /300 0/ / 300 Min...
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