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using excel solver A company produces a certain type of product in Los Angeles,

ID: 387955 • Letter: U

Question

using excel solver

A company produces a certain type of product in Los Angeles, Atlanta, and New York. Monthly capacity (in pounds) of each site is in the table. Each month, the company must ship to the four regions of the United States—East, Midwest, South, and West. The numbers of pounds listed below are monthly demand of these four regions. The shipping costs per pound are given in the table as well.

EAST

MIDWEST

SOUTH

WEST

CAPACITY

LA

$          5.00

$                3.50

$      4.20

$      2.20

120

ATLANTA

$          3.20

$                2.60

$      1.80

$      4.80

360

NEW YORK CITY

$          2.50

$                3.10

$      3.30

$      5.40

150

DEMAND

230

170

110

120

Use Excel Solver to develop the optimal transportation plan for this company.

how many pounds of finished product should be sent along the cheapest route?  what is the total monthly transportation cost?

EAST

MIDWEST

SOUTH

WEST

CAPACITY

LA

$          5.00

$                3.50

$      4.20

$      2.20

120

ATLANTA

$          3.20

$                2.60

$      1.80

$      4.80

360

NEW YORK CITY

$          2.50

$                3.10

$      3.30

$      5.40

150

DEMAND

230

170

110

120

Explanation / Answer

630 pounds of finished product should be sent along the cheapest route.

The total monthly transportation cost = 120 x $ 2.20 + 110 x $ 1.80 + 170 x $ 2.60 + 80 x $ 3.20 + 150 x $ 2.50

The total monthly transportation cost = $ 1,535

EAST MIDWEST SOUTH WEST CAPACITY LA $          5.00 $                3.50 $      4.20 $      2.20(120) 120 ATLANTA $          3.20(80) $                2.60(170) $      1.80(110) $      4.80 360 NEW YORK CITY $          2.50(150) $                3.10 $      3.30 $      5.40 150 DEMAND 230 170 110 120