Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 32

A manufacturing facility in Omaha must ship its product to customers in Bismarck, Little Rock, Toronto, Denver, Seattle, and Tulsa. The manufacturer can ship the product by rail, by truck, or by a combination of rail and truck. The weekly demands at each customer are shown. Pro-duction capacity is not an issue for the manufacturer, but there are limit* on the amount of the product that can be shipped weekly by rail and truck, and those limits are also shown. Finally, a cost matrix, which indicates the per-unit shipping cost for each mode of transportation to each customer's city, is given in a from/to cost matrix. Using this information, identify the mode of transport and the amount to be shipped to each customer so that the manufacturing facility minimizes its overall shipping cost. Hint: Let the modes of transportation be the sources of supply.