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Ira Grace B. De Castro.

ACN1 | CAED101

NETWORK MODEL – TRANSSHIPMENT PROBLEM

Table 1. Plant Capacities and Shipping Costs per Unit from Plant to Warehouse
Warehouse
Plant 1 2 Capacity
1 4 7 450
2 8 5 600
3 5 6 380

Table 2. Customer Demand and Shipping Costs per Unit from Warehouse to Customer
Warehouse
Warehouse 1 2 3 4
1 6 4 8 4
2 3 6 7 7
Demand 300 300 300 400

Objective Function
Min 4x14 + 7x15 + 8x24 + 5x25 + 5x34 + 6x35 + 6x46 + 4x47 + 8x48 +4x49+3x56+6x57+7x58 +7x59+7x39+2x45+2x54

s.t.
x14 + x15 ≤ 450 Plant 1 Capacity
x24 + x25 ≤ 600 Plant 2 Capacity
x34 + x35 + x39 ≤ 380 Plant 3 Capacity
x46 + x47 + x48 + x49 + x45 = x14 + x24 + x34 + x54 Units Shipped Out and Into Warehouse 1
x56 + x57 + x58 + x59 + x54= x15 + x25 + x35 + x45 Units Shipped Out and Into Warehouse 2
x46 + x56 = 300 Customer 1 Demand
x47 + x57 = 300 Customer 2 Demand
x48 + x58 = 300 Customer 3 Demand
x49 + x59 + x39 = 400 Customer 4 Demand
xij ≥ 0 for all i and j

Fig.1. Linear Programming Model


Fig.2. Network Presentation
EXCEL SOLVER – LINEAR PROGRAMMING
Variables Objective
New Value
Minimize $ 11,220.00
x 14 320
x 15 0 Constraints
x 24 0 No. Equality
x 25 600 1 320 ≤ 450
x 34 0 2 600 ≤ 600
x 35 0 3 380 ≤ 380
x 46 0 4 320 = 320
x 47 300 5 600 = 600
x 48 0
6 300 = 300
x 49 20
7 300 = 300
x 56 300
8 300 = 300
x 57 0
9 400 = 400
x 58 300
x 59 0
Additional Variables
x 39 380
x 45 0
x 54 0

FINDINGS

Distribution Routes
From To Units Shipped Cost Per Unit ($) Total Cost (S)
Units shipped from plant to warehouse/customer
Plant 1 Warehouse 1 320 4 1280
Plant 2 Warehouse 2 600 5 3000
Plant 3 Customer 9 380 7 2660
Units shipped out the warehouse to customer
Warehouse 1 Customer 2 300 4 1200
Warehouse 1 Customer 4 20 4 80
Warehouse 2 Customer 1 300 3 900
Warehouse 2 Customer 3 300 7 2100
Total Cost 11220

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