A company has 2 Factories and 4 Warehouses that are used to meet the demands of 3 product types...

Question

A company has 2 Factories and 4 Warehouses that are used to meet the demands of 3 product types purchased by 5 Customers. There are two ways products can flow, each with different costs:

Factory→Warehouse→Customer or Factory→Customer

Using Solver, come up with optimum solution that: minimizes the costs of shipping goods from factories to customers and factories to warehouses to customers, while not exceeding the supply available from each factory or the capacity of each warehouse, and meeting the demand from each customer. This assignment has an Excel template that includes the following:

team-challenge-1-team-2-at14fvng.xlsx team-challenge-1-instructions-r1a3lzph.pdf

Shakeel · Accepted Answer

Sheet1
						When products are directly reached from factory to customer	Total cost of shipping		$797,050
						When products are first reached to warehouse and then to customers	Total cost of shipping		$564,950
			Cost per unit to ship Factory -> Customer								Units Shipped (Factory -> Customer)
			Customer 1	Customer 2	Customer 3	Customer 4	Customer 5				Customer 1	Customer 2	Customer 3	Customer 4	Customer 5
	Factory 1	Product 1	$2.75	$3.50	$2.50	$3.00	$2.50		Factory 1	Product 1	34,000	23,000	15,000	0	0
		Product 2	$2.50	$3.00	$2.00	$2.75	$2.60			Product 2	0	0	22,000	0	0
		Product 3	$2.90	$3.00	$2.25	$2.80	$2.35			Product 3	0	0	16,000	20,000	25,000
	Factory 2	Product 1	$3.00	$3.50	$3.50	$2.50	$2.00		Factory 2	Product 1	0	0	0	32,000	16,000
		Product 2	$2.25	$2.95	$2.20	$2.50	$2.10			Product 2	20,000	15,000	0	12,000	18,000
		Product 3	$2.45	$2.75	$2.35	$2.85	$2.45			Product 3	25,000	22,000	0	0	0
	Avg Cost	Product 1	$2.88	$3.50	$3.00	$2.75	$2.25		Total	Product 1	34,000	23,000	15,000	32,000	16,000
		Product 2	$2.38	$2.98	$2.10	$2.63	$2.35			Product 2	20,000	15,000	22,000	12,000	18,000
		Product 3	$2.68	$2.88	$2.30	$2.83	$2.40			Product 3	25,000	22,000	16,000	20,000	25,000
			Cost per unit to ship Factory -> Warehouse								Units Shipped (Factory -> Warehouse)
			Warehouse 1	Warehouse 2	Warehouse 3	Warehouse 4					Warehouse 1	Warehouse 2	Warehouse 3	Warehouse 4	Total
	Factory 1	Product 1	$0.50	$0.50	$1.00	$0.20			Factory 1	Product 1	0	20,000	30,000	0	50,000
		Product 2	$1.00	$0.75	$1.25	$1.25				Product 2	30,000	25,000	8,000	0	63,000
		Product 3	$0.75	$1.25	$1.00	$0.80				Product 3	0	20,000	25,000	20,000	65,000
	Factory 2	Product 1	$1.50	$0.30	$0.50	$0.20			Factory 2	Product 1	35,000	0	0	0	35,000
		Product 2	$1.25	$0.80	$1.00	$0.75				Product 2	0	0	0	24,000	24,000
		Product 3	$1.40	$0.90	$0.95	$1.10				Product 3	20,000	0	0	0	20,000
	Avg Cost	Product 1	$1.00	$0.40	$0.75	$0.20			Total	Product 1	35,000	20,000	30,000	0	85,000
		Product 2	$1.13	$0.78	$1.13	$1.00				Product 2	30,000	25,000	8,000	24,000	87,

A company has 2 Factories and 4 Warehouses that are used to meet the demands of 3 product types purchased by 5 Customers. There are two ways products can flow, each with different costs:...

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