Transportation Problem

By Student
 Contents
1. Introduction to Problem
2. Decisions to be made
3. Formulation
4. Solution Method using SOLVER
5. Optimal Solution
 Introduction to Problem
Forbelt Corporation has a 1-year contract to supply motors for all refrigerators
produced by the Ice Age Corporation. Ice Age manufactures the refrigerators
at the four locations around the country: Boston, Dallas, Los Angeles, and St.
Paul. Plans call for the following number (in thousands) of refrigerators to be
produced at each location.
Forbelt has three plants that are capable of producing the motors. The
plants and productions capacities (in thousands) are as below :
Locations Capacity (000) Plants Capacity (000)
Boston (node 1) 50 Denver (node 5) 100
Dallas (node 2) 70 Atlanta (node 6) 100
LA (node 3) 60 Chicago (Node 7) 150

St Paul (Node4) 80

Because of varying production and transportation cost, the profit that Forbelt
earns on each lot of 1000 units depends on which plant produced the lot and
which destination it was shipped to. The following table gives the
accounting department estimates of the profit per lot (shipments will be
made in lots of 1000 units).
Produced
Boston Dallas LA St Paul
At
Denver 7 11 8 13
Atlanta 20 17 12 10
Chicago 8 18 13 16
Decisions to be made
a) Overall Profit
b) How many motors should be
produced at each plant
c) How many motors should be
shipped from each plant to
each destination
 Formulation
Let Xij = Number of motors to ship from Plant I to Location j
X14 = No of motors to ship from Denver to Boston
X15 = No of motors to ship from Denver to Dallas
X16 = No of motors to ship from Denver to LA
X17 = No of motors to ship from Denver to St Paul
 
X24 = No of motors to ship from Atlanta to Boston
X25 = No of motors to ship from Atlanta to Dallas
X26 = No of motors to ship from Atlanta to LA
X27 = No of motors to ship from Atlanta to St Paul
 
X34 = No of motors to ship from Chicago to Boston
X35 = No of motors to ship from Chicago to Dallas
X36 = No of motors to ship from Chicago to LA
X37 = No of motors to ship from Chicago to St Paul
 
Objective Function is to Maximize 7X14+11X15+8X16+13X17 + 20X24+17X25+12X26+10X27 + 8X34 + 18X35 + 13X36 +
16X37
 
Subject to Constraints :
X14+X24+X34 = 50 (Motor reqd at Boston)
X15+X25+X35 = 70 (Motor reqd at Dallas)
X16+X26+X36 = 60 (Motor reqd at LA)
X17 +X27+X37 = 80 (Motor reqd at St Paul)
 
X14+X15+X16+X17 <= 100 (Capacity available at Denver)
X24+X25+X26+X27 <= 100 (Capacity available at Atlanta )
X34+X35+X36+X37 <= 150 (Capacity available at Chicago)
Xij >= 0 for all i & j (Non negativity constraints)
 Solution Method using SOLVER
Produced At Boston Dallas LA St Paul
Denver 7 11 8 13
Atlanta 20 17 12 10
Chicago 8 18 13 16

         
  Plant to Location at: Motors   Capacity
Produced at Boston Dallas LA St Paul Shipped    
Denver 0 0 0 10 10 <= 100
Atlanta 50 21 29 0 100 <= 100
Chicago 0 49 31 70 150 <= 150
Produced 50 70 60 80      
Prodn Capacity 50 70 60 80      
Maximize Profit $4,240  
 Optimal Solution
a) Overall Profit : $4,240
b) How many motors should be produced at each
plant
Denver :10, Atlanta : 100, Chicago : 150
c) How many motors should be shipped from each
plant to each destination
Denver to St Paul : 10
Atlanta to Boston : 50
Atlanta to Dallas : 21
Atlanta to LA : 29
Chicago to Dallas : 49
Chicago to LA : 31
Chicago to St Paul : 70