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Transshipment Probelm 2

The company has two factories and four depots that supply products to six customers. The factories and depots have monthly capacity limits. Distribution costs between suppliers and customers are provided. The company aims to determine the lowest cost distribution pattern to meet each customer's monthly requirement.

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192 views5 pages

Transshipment Probelm 2

The company has two factories and four depots that supply products to six customers. The factories and depots have monthly capacity limits. Distribution costs between suppliers and customers are provided. The company aims to determine the lowest cost distribution pattern to meet each customer's monthly requirement.

Uploaded by

srivatsa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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A company has two factories, one at Liverpool and one at Brighton.

In addition, it has four


depots with storage facilities at Newcastle, Brimingham, London and Exeter. The company
sells its product to six customers C1, C2, ..., C6. Customers can be supplied either from a
depot or from the factory direct (see figure below).
Each factory has a monthly capacity given below that cannot be exceeded:
Factory Capacity
Liverpool 150,000 tons
Brighton 200,000 tons

Each depot can handle a maximum amount of inflow of products as given


below
Depot Capacity
Newcastle 70,000 tons
Birmingham 50,000 tons
London 100,000 tons
Exeter 40,000 tons
The distribution costs (which are borne by the company) are known; they are given in the
table below (in £ per ton delivered).

Supply to

Depots Customers

Suppliers Newcastle Birmingham London Exeter C1 C2 C3 C4 C5 C6

Liverpool Factory 0.5 0.5 1 0.2 1 -- 1.5 2 -- 1

Brighton Factory -- 0.3 0.5 0.2 2 -- -- -- -- --

Newcastle Depot -- -- -- -- -- 1.5 0.5 1.5 -- 1

Birmingham Depot -- -- -- -- 1 0.5 0.5 1 0.5 --

London Depot -- -- -- -- -- 1.5 2 -- 0.5 1.5

Exeter Depot -- -- -- -- -- -- 0.2 1.5 0.5 1.5

A dash indicates the impossibility of certain suppliers for certain depots or customers
Each customer has a monthly requirement given below that must be met:

Customer Monthly Requirement


C1 50,000 tons
C2 10,000 tons
C3 40,000 tons
C4 35,000 tons
C5 60,000 tons
C6 20,000 tons

The company would like to determine the distribution pattern that would minimize overall
monthly cost. In the results, show the total cost, and the optimal flow of the product among the
plants, depots and the customers.

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