Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 51

In Problem in Chapter, Computers Unlimited sells microcomputers and distributes them from three warehouses to four universities. The available supply at the three warehouses, demand at the four universities, and shipping costs are shown in the following table:
Instead of its original objective of cost minimization, Computers Unlimited has indicated the following goals, arranged in order of their importance:
(1) A M has been one of its better long-term customers, so Computers Unlimited wants to meet all of A M 's demands.
(2) Because of recent problems with a trucking union, it wants to ship at least 80 units from the Washington warehouse to Central University.
(3) To maintain the best possible relations with all its customers, Computers Unlimited would like to meet no less than 80% of each customer's demand.
(4) It would like to keep total transportation costs to no more than 110% of the $22,470 total cost achieved with the optimal allocation, using the transportation solution method.
(5) Because of dissatisfaction with the trucking firm it uses for the Atlanta-to-State deliveries, it would like to minimize the number of units shipped over this route.
a. Formulate a goal programming model for this problem to determine the number of microcomputers to ship on each route to achieve the goals.
b. Solve this model by using the computer.
Problem
Computers Unlimited sells microcomputers to universities and colleges on the East Coast and ships them from three distribution warehouses. The firm is able to supply the following numbers of microcomputers to the universities by the beginning of the academic year:
Four universities have ordered microcomputers that must be delivered and installed by the beginning of the academic year:
The shipping and installation costs per microcomputer from each distributor to each university are as follows:
Solve this problem by using the computer.