Exam 16: Supplement Operational Decision-Making Tools: Transportation and Transshipment Models

Use this problem for the next four (4)questions. A company has manufacturing plants in Las Vegas,Portland,and Seattle.Items produced from these plants are boxed and shipped to warehouses in Minneapolis and Chicago where they are tested and repackaged for distribution to final customers in New York,Miami,and Charlotte.The network of transshipment routes shown below indicates the cost associated with shipping a box from the plants to the warehouses and then the cost of shipping the repackaged unit from the warehouses to the final customers. Assume that the supply and demand requirements are as shown in the table below. The company would like to determine the lowest cost shipping and distribution plan. The following solution was produced using Microsoft Excel. -How many boxes are shipped from Seattle?

What is the total cost of the optimal solution?

An important factor in supply chain management is determining the lowest-cost transportation provider from among several alternatives.

How many units are being shipped to New York?

The spreadsheet cell that contains the total cost of the transportation plan is known as the __________ in Excel's Solver dialog box.

If a route is prohibited,units can be transported from a particular source to a particular destination.

In a transportation model the total supply and total demand must be equal.

Two quantitative techniques that are used for determining the least cost means of transporting goods and services are the transportation method and the queuing method.