Huntco produces tomato sauce at five different plants. The tomato sauce is stored at one of three warehouses. Huntco has four customers. The first customer requires 200 tons of sauce, the second customer requires 300 tons, the third customer requires 150 tons and the 4th customer requires 250 tons. Formulate a LP model to minimize the annual cost of meeting customer demands by determining the open warehouses and shipping plan. The capacity (in tons) of each plant is given in the following table. The cost per ton of producing tomato sauce at each plant and shipping it to each warehouse is given in the table shown here. The cost of shipping a ton of sauce from each warehouse to each customer is given in the table below: The annual fixed cost of operating each plant and warehouse is listed in this table.
Expert Answer
Note: The cost figures are not visible well. I have updated the model whatever I have read, if there happens to be any change, please change it in the model and run the solver.
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Excel model
Final Result
From/ To | WH 1 | WH 2 | WH 3 |
Plant 1 | 0 | 0 | 0 |
Plant 2 | 0 | 200 | 0 |
Plant 3 | 0 | 300 | 0 |
Plant 4 | 0 | 0 | 0 |
Plant 5 | 0 | 400 | 0 |
From/ To | Cust 1 | Cust 2 | Cust 3 | Cust 4 |
WH 1 | 0 | 0 | 0 | 0 |
WH 2 | 200 | 300 | 150 | 250 |
WH 3 | 0 | 0 | 0 | 0 |
Shipping Cost from Plant to WH | 520000 | |||||
Shipping Cost from WH to Customer | 55000 | |||||
Fixed Costs | 145000 | |||||
Total Cost | 720000 |