Problems 7

1. A company imports goods at two ports; Philadelphia and New Orleans. Shipment of one
product are made to customer in Atlanta, Dallas, Columus, and !oston. "or the ne#t
planning period, the supplies at each port, customer demands, and shipping cost per case
from each port to each customer are as follows$
%. &. '. (. ).
Port Atlanta Dallas Columus !oston Port Supply
Philadelphia % ) ) % (***
New Orleans 1 % ( + &***
Demand 1'** &%** %*** %***
De,elop a networ- representation of the distriution system .transportation prolem/.
%. 0econsider the distriution system descrie in Prolem 1
a. De,elop a linear programming model that can e sol,ed to minimi1ed transportation cost.
. Sol,e the linear program to determine the minimum cost shipping schedule.
&. 2ri Country 3tilities 4nc. suppliers natural gas to customer in a three country area. 2he
company purchases natural gas from two companies; Southern 5as and Northwest 5as.
Demand forecast for the coming winter season are 6amilton country, '** units; !utler
Country, %** unit; and Clermont Country &** units. Contracts to pro,ide the following
7uantities ha,e een written; Southern 5as, (** units; and Northwest gas, '** units.
Distriution cost for the countries ,ary, depending upon the location of the suppliers. 2he
distriution costs per unit .in thousand dollars/ are as follows
to
"rom 6amilton !utler Clermont
Southern 5as . 1* %* 1(
Northwest 5as 1% 1( 18
a. De,elop a networ- representation of this prolem
. De,elop linear programming model that can e used to determine the plan that will
minimi1e total distriution cost
c. Descrie the distriution plan and show the total distriution cost
d. 0ecent residential and industrial growth in !utler Country has the potential for
increasing demand y as much as 1** units. 9hich supplier should 2ri:Country contact
with to supply the additional capacity;