Page 403 Problem 5 By: Ms. Tamara MacEwen Parisay’s comment in red

By: Ms. Tamara MacEwen

Plants: Detroit and Atlanta

Warehouses: Denver and New York

Customers: Los Angeles, Chicago, and Philadelphia

Cars are produced at plants, then shipped to warehouses, and finally shipped to customers. Detroit can produce 150 cars per week, and Atlanta can produce 100 cars per week. Los Angeles requires 80 cars per week; Chicago, 70; and Philadelphia, 60. It costs $10,000 to produce a car at each plant, and the cost of shipping a car between two cities is given in Table 62. Determine how to meet General Ford’s weekly demands at minimum cost.
Table 62

	To ($)
From	Denver	New York
Detroit	1253	637
Atlanta	1398	841

	To ($)
From	Los Angeles	Chicago	Philadelphia
Denver	1059	996	1691
New York	2786	802	100

a) Write the first transportation tableau, manually, using the style in your text book.

b) Solve it as a transshipment problem using WinQSB (Network modeling>> Network option). Notice you do not need to define transshipment point as in your textbook. Refer to the example on the Class Notes. Print input and output tables.

After reviewing the current supply chain, I would make the following recommendations:

The total shipping costs of this plan will be $338,610 per week. Total production and shipping costs per week would be $2,838,610 per week (200 cars produced at $10,000 each plus $338,610 in shipping costs).

Shipping plan will be:

1. 
   Ship 20 cars from Detroit to Denver
   
2. 
   Ship 130 cars from Detroit to New York
   
3. 
   Ship 60 cars from Atlanta to Denver
   
4. 
   Ship 80 cars from Denver to Los Angeles
   
5. 
   Ship 70 cars from New York to Chicago
   
6. 
   Ship 60 cars from New York to Philadelphia