NADIA SYARIFAH M.

(A021191023)

1. For the next planning period, the supplies at each port, customer demand and
the shipping costs per case from each port to each customer are as follows :
Customer
Port Paris Berlin London Milan Port Supply
Lisbon 2 6 6 2 5000
Le Havre 1 2 5 7 3000
Demand 1400 3200 2000 1400

a. Develop a network model of the distribution system for this problem

PARIS
(1400)
2
LISBON
6 BERLIN
(5000)
6 (3200)
2
SUPPLIES LONDON

(2000)

1
2 5

MILAN
LE HAVRE
7 (1400)
(3000)
DEMANDS

SUPPLIES
 b. Solve the problem to determine the minimum cost shipping schedule
𝑋𝑖𝑗 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡 𝑠h𝑖𝑝𝑝𝑒𝑑 𝑓𝑟𝑜𝑚 𝑜𝑟𝑖𝑔𝑖𝑛 𝑖 𝑡𝑜 𝑑𝑒𝑠𝑡𝑖𝑛𝑎𝑡𝑖𝑜𝑛 𝑗
𝑤𝑕 𝑒𝑟𝑒 𝑖 = 𝐴, 𝐵 𝑎𝑛𝑑 𝑗 = 1,2,3,4
𝐹. 𝑀𝑖𝑛 = 2𝑋𝐴1 + 6𝑋𝐴2 + 6𝑋𝐴3 + 2𝑋𝐴4 + 𝑋𝐵1 + 2𝑋𝐵2 + 5𝑋𝐵3 + 7𝑋𝐵4
Subject :
𝑋𝐴1 + 𝑋𝐴2 + 𝑋𝐴3 + 𝑋𝐴4 ≤ 5000 (Lisbon supply)
𝑋𝐵1 + 𝑋𝐵2 + 𝑋𝐵3 + 𝑋𝐵4 ≤ 3000 (Le Havre supply)
𝑋𝐴1 + 𝑋𝐵1 = 1400 (Paris demand)
𝑋𝐴2 + 𝑋𝐵2 = 3200 (Berlin demand)
𝑋𝐴3 + 𝑋𝐵3 = 2000 (London demand)
𝑋𝐴4 + 𝑋𝐵4 = 1400 (Milan demand)
𝑋𝑖𝑗 ≥ 0

Using Solver Excel

Variable Value
XA1 1400
XA2 200
XA3 2000
XA4 1400
XB1 0
XB2 3000
XB3 0
XB4 0

To Obj. val.
24800
From 1 2 3 4 Supply Limit
A 1400 200 2000 1400 5000 ≤ 5000
B 0 3000 0 0 3000 ≤ 3000
1400 3200 2000 1400
= = = =
Demand Limit 1400 3200 2000 1400
 Route
From To Units shipped Cost per unit Total cost
Lisbon Paris 1400 € 2 € 2,800
Lisbon Berlin 200 € 6 € 1,200
Lisbon London 2000 € 6 € 12,000
Lisbon Milan 1400 € 2 € 2,800
Le Havre Berlin 3000 € 2 € 6,000
€ 24,800

2. The supplies, demands and transportation costs per unit are shown on the networks

JEFFERSON CITY DES MOINES

14
(30) (25)
9

7
DES MOINES

(15)
6
10

OMAHA
5
(20)

ST.LOUIS
SUPPLIES
(10)

DEMANDS

a. Develop a linear programming model for this problem; be sure to define the variables
in your model

Customer
Port Des Moines Kansas City St. Louis Port Supply
Jefferson City 14 9 7 30
Omaha 8 10 5 20
Demand 25 15 10
 𝑋𝑖𝑗 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡 𝑠h𝑖𝑝𝑝𝑒𝑑 𝑓𝑟𝑜𝑚 𝑜𝑟𝑖𝑔𝑖𝑛 𝑖 𝑡𝑜 𝑑𝑒𝑠𝑡𝑖𝑛𝑎𝑡𝑖𝑜𝑛 𝑗
𝑤𝑕 𝑒𝑟𝑒 𝑖 = 𝐴, 𝐵 𝑎𝑛𝑑 𝑗 = 1,2,3
𝐹. 𝑀𝑖𝑛 = 14𝑋𝐴1 + 9𝑋𝐴2 + 7𝑋𝐴3 + 8𝑋𝐵1 + 10𝑋𝐵2 + 5𝑋𝐵3
𝑋𝐴1 + 𝑋𝐴2 + 𝑋𝐴3 ≤ 30 (Jefferson City supply)
𝑋𝐵1 + 𝑋𝐵2 + 𝑋𝐵3 ≤ 20 (Omaha supply)
𝑋𝐴1 + 𝑋𝐵1 = 25 (Des Moines demand)
𝑋𝐴2 + 𝑋𝐵2 = 15 (Kansas City demand)
𝑋𝐴3 + 𝑋𝐵3 = 10 (St. Louis demand)
𝑋𝑖𝑗 ≥ 0

b. Solve the linear programme to determine the optimal solution

Using Solver Excel

To Obj. val. 435

From Des Moines (1) Kansas City (2) St. Louis (3) Supply Limit
Jefferson City (A) 5 15 10 30 ≤ 30
Omaha (B) 20 0 0 20 ≤ 20
25 15 10
= = =
Demand Limit 25 15 10

Variable Value
XA1 5
XA2 15
XA3 10
XB1 20
XB2 0
XB3 0

Route
From To Units shipped Cost per unit Total cost
Jefferson City Des Moines 5 € 14 € 70
Jefferson City Kansas City 15 € 9 € 135
Jefferson City St. Louis 10 € 7 € 70
Omaha Des Moines 20 € 8 € 160
€ 435
3. A product is produced at three plants and shipped to three warehouse (the transportation
per unit are shown in the following table

Warehouse
a.Plant
S W1 W2 W3 Plant Capacity
P1 20 16 24 300
P2h 10 10 8 500
P3o 12 18 10 100
Warehouse demand 200 400 300
s
a. Show a network presentation of the problem

P1 20
W1

(300) (200)
16

10
24
P2 10 W1

(500) 8 (400)

12 18
P3 10 W1

(100) (300)

PLANT WAREHOUSE
CAPACITY DEMAND
 b. Develop a linear programming model for minimizing transportation cost: solve this
model to determine the minimum cost solution
𝑋𝑖𝑗 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡 𝑠𝑕 𝑖𝑝𝑝𝑒𝑑 𝑓𝑟𝑜𝑚 𝑜𝑟𝑖𝑔𝑖𝑛 𝑖 𝑡𝑜 𝑑𝑒𝑠𝑡𝑖𝑛𝑎𝑡𝑖𝑜𝑛 𝑗
𝑤𝑕 𝑒𝑟𝑒 𝑖 = 𝐴, 𝐵, 𝐶 𝑎𝑛𝑑 𝑗 = 1,2,3
𝐹. 𝑀𝑖𝑛 = 20𝑋𝐴1 + 16𝑋𝐴2 + 24𝑋𝐴3 + 10𝑋𝐵1 + 10𝑋𝐵2 + 8𝑋𝐵3 + 12𝑋𝐶1 + 18𝑋𝐶2
+ 12𝑋𝐶3
𝑋𝐴1 + 𝑋𝐴2 + 𝑋𝐴3 ≤ 300 (P1 supply)
𝑋𝐵1 + 𝑋𝐵2 + 𝑋𝐵3 ≤ 500 (P2 supply)
𝑋𝐶1 + 𝑋𝐶2 + 𝑋𝐶3 ≤ 100 (P3 supply)
𝑋𝐴1 + 𝑋𝐵1 + 𝑋𝐶1 = 200 (W1 demand)
𝑋𝐴2 + 𝑋𝐵2 + 𝑋𝐶2 = 400 (W2 demand)
𝑋𝐴3 + 𝑋𝐵3 + 𝑋𝐶3 = 300 (W3 demand)
𝑋𝑖𝑗 ≥ 0

Using Solver Excel

To Obj. val. 10400

From W1 W2 W3 Plant Limit
P1 (A) 0 300 0 300 ≤ 300
P2 (B) 200 100 200 500 ≤ 500
P3 (C.) 0 0 100 100 ≤ 100
200 400 300
= = =
Warehouse Limit 200 400 300

Variable Value
XA2 300
XB1 200
XB2 100
XB3 200
XC3 100

Route
From To Units shipped Cost per unit Total cost
P1 W2 300 16 4,800
P2 W1 200 10 2,000
P2 W2 100 10 1,000
P3 W3 200 8 1,600
P3 W3 100 10 1,000
10,400

c. Suppose that the entries in the table represent profit per unit produced at plant/ and
sold to warehouse. How does the model changes from that in part (b)?
𝑋𝑖𝑗 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡 𝑠𝑕 𝑖𝑝𝑝𝑒𝑑 𝑓𝑟𝑜𝑚 𝑜𝑟𝑖𝑔𝑖𝑛 𝑖 𝑡𝑜 𝑑𝑒𝑠𝑡𝑖𝑛𝑎𝑡𝑖𝑜𝑛 𝑗
𝑤𝑕 𝑒𝑟𝑒 𝑖 = 𝐴, 𝐵, 𝐶 𝑎𝑛𝑑 𝑗 = 1,2,3
𝐹. 𝑀𝑎𝑥 = 20𝑋𝐴1 + 16𝑋𝐴2 + 24𝑋𝐴3 + 10𝑋𝐵1 + 10𝑋𝐵2 + 8𝑋𝐵3 + 12𝑋𝐶1 + 18𝑋𝐶2
+ 12𝑋𝐶3
𝑋𝐴1 + 𝑋𝐴2 + 𝑋𝐴3 ≤ 300 (P1 supply)
𝑋𝐵1 + 𝑋𝐵2 + 𝑋𝐵3 ≤ 500 (P2 supply)
𝑋𝐶1 + 𝑋𝐶2 + 𝑋𝐶3 ≤ 100 (P3 supply)
𝑋𝐴1 + 𝑋𝐵1 + 𝑋𝐶1 = 200 (W1 demand)
𝑋𝐴2 + 𝑋𝐵2 + 𝑋𝐶2 = 400 (W2 demand)
𝑋𝐴3 + 𝑋𝐵3 + 𝑋𝐶3 = 300 (W3 demand)
𝑋𝑖𝑗 ≥ 0

Using Solver Excel

To Obj. val. 14000

From W1 W2 W3 Plant Limit
P1 (A) 0 0 300 300 ≤ 300
P2 (B) 200 300 0 500 ≤ 500
P3 (C.) 0 100 0 100 ≤ 100
200 400 300
= = =
Warehouse Limit 200 400 300

Variable Value
XA3 300
XB1 200
 XB2 100
XC2 200

Route
From To Units shipped Profit per unit Total cost
P1 W3 300 24 7,200
P2 W1 200 10 2,000
P2 W2 300 10 3,000
P3 W2 100 18 1,800
14,000