Production Facilities Average Daily Forecast

Centers Toronto Denver L.A. Seattle Guadalajara 5-Yr. 10-Yr.

Toronto 0.75 2.5 4.5 4.75 5.25 1000 1000
Denver 2.5 1 2.5 2.75 3.25 750 1000
L.A. 4.5 2.5 0.5 2.25 1.75 2500 3000
Seattle 4.75 2.75 2.25 0.75 2.5 1500 2000
Chicago 1.5 1.5 3.75 2.5 3.75 1500 2000
Atlanta 3 2.25 3 3.5 3.5 750 1000
Guadalajara 5.25 3.25 1.75 3.75 0.5 2000 3000

Question 1: Find Transportation cost for:

a) Meeting 5-Yr forecast without Guadalajara Plant
b) Meeting 5-Yr forecast with Guadalajara Plant
c) Meeting 10-Yr forecast without Guadalajara Plant
d) Meeting 10-Yr forecast without Guadalajara Plant

Question 2: In any of the above cases do you think production cost should also be considered?
global optimization (production cost + transportation cost) if supply>demand, production cost should be con
c d
a
b
dummy
dummy cost wil have effect on transportation cost
solving in excel wouldn't make a difference
if supply<demand, high cost of dummy reduces no. of iterations
winston

use 0 as dummy value

transportation cost = obj coefficient * final value

no. of non 0 final values < m+n-1 thus, degenerate soln

10 zeroes are reqd. and 10 are there thus single solution

m+n-1 paths
2 more are considered 0 to get rid of the degeneracy problem

given an optimal soln, how to find the other optimal soln?

reduced cost= cij-ui-vj 1.5+0.75-1.5 denver to chicago

0.75
 Facility Production Cost per Carton Daily Capacity per Carton
Toronto 14 2,500
Denver 19 1,500
Los Angeles 13 3,500
Seattle 17 2,500
Guadalajara 10 4,000

oduction cost should be considered

Microsoft Excel 14.0 Sensitivity Report
Worksheet: [Case Data for Session 08.xls]Sheet1
Report Created: 3/7/2011 6:35:03 PM

Variable Cells
Final Reduced Objective Allowable Allowable
Cell Name Value Cost Coefficient Increase Decrease
$D$22 Toronto Toronto 1000 0 0.75 2.5 0.75
$E$22 Toronto Denver 0 0.75 2.5 1E+030 0.75
$F$22 Toronto L.A. 0 1.75 4.5 1E+030 1.75
$G$22 Toronto Seattle 0 3.5 4.75 1E+030 3.5
$H$22 Toronto Chicago 1500 0 1.5 0.75 1.5
$I$22 Toronto Atlanta 0 0 3 0.75 0.5
$J$22 Toronto Guadalajara 0 1.25 5.25 1E+030 1.25
$D$23 Denver Toronto 0 2.5 2.5 1E+030 2.5
$E$23 Denver Denver 750 0 1 0.75 1.75
$F$23 Denver L.A. 0 0.5 2.5 1E+030 0.5
$G$23 Denver Seattle 0 2.25 2.75 1E+030 2.25
$H$23 Denver Chicago 0 0.75 1.5 1E+030 0.75
$I$23 Denver Atlanta 750 0 2.25 0.5 0.75
$J$23 Denver Guadalajara 0 0 3.25 0.5 0.5
$D$24 Los Angeles Toronto 0 6 4.5 1E+030 6
$E$24 Los Angeles Denver 0 3 2.5 1E+030 3
$F$24 Los Angeles L.A. 1500 0 0.5 0.5 0.25
$G$24 Los Angeles Seattle 0 3.25 2.25 1E+030 3.25
$H$24 Los Angeles Chicago 0 4.5 3.75 1E+030 4.5
$I$24 Los Angeles Atlanta 0 2.25 3 1E+030 2.25
$J$24 Los Angeles Guadalajara 2000 0 1.75 0.25 0.5
$D$25 Seattle Toronto 0 4.5 4.75 1E+030 4.5
$E$25 Seattle Denver 0 1.5 2.75 1E+030 1.5
$F$25 Seattle L.A. 1000 0 2.25 0.25 2.25
$G$25 Seattle Seattle 1500 0 0.75 2.25 1.25
$H$25 Seattle Chicago 0 1.5 2.5 1E+030 1.5
$I$25 Seattle Atlanta 0 1 3.5 1E+030 1
$J$25 Seattle Guadalajara 0 0.25 3.75 1E+030 0.25

Constraints
Final Shadow Constraint Allowable Allowable
Cell Name Value Price R.H. Side Increase Decrease
$D$26 Toronto 1000 0.75 1000 0 1000
$E$26 Denver 750 1.75 750 0 0
$F$26 L.A. 2500 2.75 2500 0 0
$G$26 Seattle 1500 1.25 1500 0 0
$H$26 Chicago 1500 1.5 1500 0 1500
$I$26 Atlanta 750 3 750 0 0
$J$26 Guadalajara 2000 4 2000 0 0
$K$22 Toronto 2500 0 2500 1E+030 0
$K$23 Denver 1500 -0.75 1500 0 0
$K$24 Los Angeles 3500 -2.25 3500 0 0
$K$25 Seattle 2500 -0.5 2500 0 0

how much can the objective coefficient increase or decrease without changing the opti
ease without changing the optimal solution
 Centers Toronto Denver L.A. Seattle Chicago Atlanta
Toronto 0.75 2.5 4.5 4.75 1.5 3
Denver 2.5 1 2.5 2.75 1.5 2.25
L.A. 4.5 2.5 0.5 2.25 3.75 3
Seattle 4.75 2.75 2.25 0.75 2.5 3.5
Guadalajara 5.25 3.25 1.75 2.5 3.75 3.5
5-Yr. 1000 750 2500 1500 1500 750
10-Yr. 1000 1000 3000 2000 2000 1000

Toronto Denver L.A. Seattle Chicago Atlanta

Toronto 1000 0 0 0 1500 0
Denver 0 750 0 0 0 750
Los Angeles 0 0 1501 0 0 0
Seattle 0 0 999 1500 0 0
1000 750 2500 1500 1500 750
 Facility Production Cost per Carton
Guadalajara Toronto 14
5.25 Denver 19
3.25 Los Angeles 13
1.75 Seattle 17
3.75 Guadalajara 10
0.5
2000
3000

13062.25
Guadalajara
0 2500
1 1501
1999 3500
0 2499
2000
Daily Capacity per Carton
2,500
1,501
3,500
2,500
4,000