company has a total of 3 factories to produce steel and iron. Every month, the company must meet the following demands: 3200 tonnes of steel and 1000 tonnes of Iron. Each factory has a different shipping cost per tonne (£/tonne) for each product as shown in the table below: Factory Steel Iron 1 200 500 2 800 400 3 500 1000 The warehouses in Factory 1, Factory 2 and Factory 3 can store 2000 tonnes,1500 tonnes and 2500 tonnes of products, respectively. The company is seeking for a solution to minimise the shipping cost. a) Based on the table above, determine the optimal monthly assignment plan for the factory. That is, how many tonnes each factory needs to be shipped t
A company has a total of 3 factories to produce steel and iron. Every month, the company
must meet the following demands: 3200 tonnes of steel and 1000 tonnes of Iron. Each factory
has a different shipping cost per tonne (£/tonne) for each product as shown in the table
below:
Factory Steel Iron
1 200 500
2 800 400
3 500 1000
The warehouses in Factory 1, Factory 2 and Factory 3 can store 2000 tonnes,1500 tonnes and
2500 tonnes of products, respectively. The company is seeking for a solution to minimise the
shipping cost.
a) Based on the table above, determine the optimal monthly assignment plan for the factory.
That is, how many tonnes each factory needs to be shipped to fulfil the demand.
b) Suppose Factory 3 will not be available during the next few months. Keeping the same
demand, is the company able to fulfil the demands? What would be the revised assignment
plan to ensure demand is fulfilled?
c) The cost of raw materials in each factory is shown in the table below. Change the company
objective function to minimize all costs and find the optimal assignment plan. Does the new
solution change from the base case? If yes, how so?
Factory Steel raw material
cost
Iron raw material
cost
1 50 100
2 70 120
3 45 130
(20
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