I Did NOT put my Name Here!

CIS3380 Spr 2017 (Jetton)

Acme Products Shipping Plan

Step 1: Type in the solver specifications (using excel cell addresses) for the optimization problem into the table below FIRST!

Description Field Content Description Constraint Values/Ref

Target Cell? ? ?

Function? ? n/a

Changing/Decision Cells? ? ?

Initial Constraints 1. ? ?
2. ? ?
3. ? ?

NEW Case 1 Constraint? ? ?

Step 2: Receiving Warehouses

Production Plant Capacity Total Shipments
Shipping Plants Cost/uinit (units) from Plant San Diego Salt Lake Chicago Dallas New York
Chicago 6.25 750 5 1 1 1 1 1
Phoenix 4.50 550 5 1 1 1 1 1
Dallas 3.80 500 5 1 1 1 1 1
Los Angeles 5.50 545 5 1 1 1 1 1
--- --- --- --- ---
Total Shipments Received by Warehouse: 4 4 4 4 4

Demands by
Warehouse 375 175 300 300 275

Shipping costs (per unit) from plant (row) to

Plant warehouse (column):
Chicago $ 4.00 $ 6.00 $ 1.00 $ 3.00 $ 7.00
Phoenix $ 3.00 $ 5.00 $ 7.00 $ 12.00 $ 12.00
Dallas $ 8.95 $ 6.95 $ 4.90 $ 1.00 $ 10.75
Los Angeles $ 2.00 $ 5.00 $ 12.00 $ 10.00 $ 14.95
--- --- --- --- ---
$ 17.95 $ 22.95 $ 24.90 $ 26.00 $ 44.70
Total Shipping Cost $ 136.50
Total Production Cost $ 100.25

Total Cost To Deliver Goods To Warehouses $ 236.75

I Did NOT put my Name Here! CIS3380 Spr 2017 (Jetton)

Step 3: Initially Solved Base Case: "Total Cost to Deliver Goods to Warehouses"

Step 4: Case 1: Minimum cost to deliver goods without the Chicago plant ==>

Step 5: Case 2

Adj Minimum cost to deliver goods without the Chicago *AND* the proposed Phoenix prices from the new shipper candidate/proposal:

Case 2 Total Costs ==>

Does the offer from the new Phoenix potential shipper make sense and reduces your total cost of delivering goods to your warehouses?
Justify your answer with numbers from the solution.

Step 6: Take the Offer? Yes or No???? ?

WHY? State why you should or should not take the offer ?
What is the $ impact (difference) between case #1 & case #2? ?