Book Problem Chapter 10 Self Test #4

Team Highlander: Michael Monahan

10/26/11

4.) Arnoff Enterprises manufactures the central processing unit (CPU) for a line of
personal computers. The CPUs are manufactured in Seattle, Columbus, and New York
and shipped to warehouses in Pittsburgh, Mobile, Denver, Lose Angeles, and Washington,
D.C., for further distribution. The following table shows the number of CPUs available at
each plant, the number of CPUS required by each warehouse, and the shipping costs
(dollars per unit):
Warehouse
Plant

Pitssburgh Mobile

Denver
5
8
7

Los
Angeles
9
30
10

Washington CPUs
Available
10
9000
6
4000
4
8000

Seattle
Columbus
New
York
CPUs
Required

10
2
1

20
10
20

3000

5000

4000

6000

3000

21,000

a. Develop a network representation of this problem.

b. Determine the amount of that should be shipped from each plant to each warehouse to
minimize the total shipping cost.
c. The Pittsburgh warehouse just increased its order by 1000 units, and Arnoff authorized
the Columbus plant to increase its production by 1000 units. Will this production increase
lead to an increase or decrease in total shipping costs? Solve for the new optimal solution.

Solution:
Network Model:

Linear Programming Model:

!Objective Function; Find the optimal amounts to be shipped between
each plant and warehouse to minimize
shipping costs
!X1 = amount shipped from Seattle to Pitssburgh
!X2 = amount shipped from Seattle to Mobile
!X3 = amount shipped from Seattle to Denver
!X4 = amount shipped from Seattle to Los Angeles
!X5 = amount shipped from Seattle to Washington
!X6 = amount shipped from Columbus to Pitssburgh
!X7 = amount shipped from Columbus to Mobile
!X8 = amount shipped from Columbus to Denver
!X9 = amount shipped from Columbus to Los Angeles
!X10 = amount shipped from Columbus to Washington
!X11 = amount shipped from New York to Pitssburgh
!X12 = amount shipped from New York to Mobile

!X13 = amount shipped from New York to Denver

!X14 = amount shipped from New York to Los Angeles
!X15 = amount shipped from New York to Washington;

Linear Programming Solution:

Global optimal solution found.
Objective value:
Infeasibilities:
Total solver iterations:

Seattle to Denver
Seattle to Los Angeles
Columbus to Mobile
New York to Pittsburgh
New York to Los Angeles
New York to Washington

Units
4000
5000
4000
3000
1000
3000
Total
Original

150000.0
0.000000
8

Cost
20,000
45,000
50,000
4,000
10,000
12,000
141,00
150,000
150,000-141,000 = 9,000 in savings