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A company is manufacturing two products, A and B, at the production facilities in town X and Y. Four customers have ordered the following amounts in the coming period: Product A Produet B 700 Customer I Customer 2 400 550 650 Customer 3 500 800 Customer 4 600 400 The company has currently no products on stock. The products are distributed either directly from the facilities to the customers, or through the intermediate stocks K and L. Both facilities use one unit production time for each of the products and have a total capacity of 2700 time units as shown in the table to the left, while the capacities for the stocks K and L are shown in the table to the right. Time A Time B Capacity 1 Stock K 4000 m Stock L Factory X Factory Y 2700 Сараcity 4500 m Product A Product B 3 m? 2700 Space/unit 2 m² Distribution costs per unit from the production facilities to stocks or customers are: K L 2 3 4 190 160 200 55 65 75 45 150 160 Y 170 210 150 B X 50 70 140 180 150 190 Y 60 40 150 160 200 140 Similarly, the distribution costs from stocks to customers are: 2 130 3 95 K 110 120 85 115 140 75 B K 100 120 90 110 80 110 130 70 Formulate the problem as an LP problem where the main objective is to minimize the costs. Define objective function, constraints, variables and parameters used. i) Find the optimal solution by using Solver in Excel.

A company is manufacturing two products, A and B, at the production facilities in town X and Y. Four customers have ordered the following amounts in the coming period: Product A Produet B 700 Customer I Customer 2 400 550 650 Customer 3 500 800 Customer 4 600 400 The company has currently no products on stock. The products are distributed either directly from the facilities to the customers, or through the intermediate stocks K and L. Both facilities use one unit production time for each of the products and have a total capacity of 2700 time units as shown in the table to the left, while the capacities for the stocks K and L are shown in the table to the right. Time A Time B Capacity 1 Stock K 4000 m Stock L Factory X Factory Y 2700 Сараcity 4500 m Product A Product B 3 m? 2700 Space/unit 2 m² Distribution costs per unit from the production facilities to stocks or customers are: K L 2 3 4 190 160 200 55 65 75 45 150 160 Y 170 210 150 B X 50 70 140 180 150 190 Y 60 40 150 160 200 140 Similarly, the distribution costs from stocks to customers are: 2 130 3 95 K 110 120 85 115 140 75 B K 100 120 90 110 80 110 130 70 Formulate the problem as an LP problem where the main objective is to minimize the costs. Define objective function, constraints, variables and parameters used. i) Find the optimal solution by using Solver in Excel.

Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Problem 1 A company is manufacturing two products, A and B, at the production facilities in town X and Y. Four customers have ordered the following amounts in the coming period: Product A Product B Customer 1 Customer 2 700 400 650 550 Customer 3 500 800 Customer 4 600 400 The company has currently no products on stock. The products are distributed either directly from the facilities to the customers, or through the intermediate stocks K and L. Both facilities use one unit production time for each of the products and have a total capacity of 2700 time units as shown in the table to the left, while the capacities for the stocks K and L are shown in the table to the right. Time A Time B Cараcity Stock K Stock L 4500 m² Factory X Factory Y 2700 Сараeity 4000 m2 2700 Product A Product B Space/unit 3 m2 2 m? Distribution costs per unit from the production facilities to stocks or customers are: K L 1 2 3 X 55 75 150 190 160 200 Y 65 45 160 170 210 150 B 50 70 140 180 150 190 60 40 150 160 200 140 Similarly, the distribution costs from stocks customers are: A 1 2 3 4 K 110 130 95 120 L 85 115 140 75 В K 100 120 90 110 80 110 130 70 a) Formulate the problem as an LP problem where the main objective is to minimize the costs. Define objective function, constraints, variables and parameters used. i) Find the optimal solution by using Solver in Excel.
Transcribed Image Text:Problem 1 A company is manufacturing two products, A and B, at the production facilities in town X and Y. Four customers have ordered the following amounts in the coming period: Product A Product B Customer 1 Customer 2 700 400 650 550 Customer 3 500 800 Customer 4 600 400 The company has currently no products on stock. The products are distributed either directly from the facilities to the customers, or through the intermediate stocks K and L. Both facilities use one unit production time for each of the products and have a total capacity of 2700 time units as shown in the table to the left, while the capacities for the stocks K and L are shown in the table to the right. Time A Time B Cараcity Stock K Stock L 4500 m² Factory X Factory Y 2700 Сараeity 4000 m2 2700 Product A Product B Space/unit 3 m2 2 m? Distribution costs per unit from the production facilities to stocks or customers are: K L 1 2 3 X 55 75 150 190 160 200 Y 65 45 160 170 210 150 B 50 70 140 180 150 190 60 40 150 160 200 140 Similarly, the distribution costs from stocks customers are: A 1 2 3 4 K 110 130 95 120 L 85 115 140 75 В K 100 120 90 110 80 110 130 70 a) Formulate the problem as an LP problem where the main objective is to minimize the costs. Define objective function, constraints, variables and parameters used. i) Find the optimal solution by using Solver in Excel.
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