Allied Manufacturing Has Three Factories Located in Dallas, Houston, and New

Essay

Allied Manufacturing has three factories located in Dallas, Houston, and New Orleans. They each produce the same 281 products and ship to three regional warehouses - #1, #2, and #3. The cost of shipping one unit of each product to each of the three destinations is given in the table below: There is no way to meet the demand for each warehouse. Therefore, the company has decided to set the following equally weighted goals: (1) each source should ship as much of its capacity as possible, (2) the number shipped to each destination should be as close to the demand as possible, (3) the capacity of New Orleans should be divided as evenly as possible between warehouses #1 and #2, and (4) the total cost should be less than $1,400. Formulate this as a goal program, which includes a strict requirement that capacities cannot be violated.