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International Paper Company has four warehouses at different cities: Buffalo, De

ID: 447118 • Letter: I

Question

International Paper Company has four warehouses at different cities: Buffalo, Detroit, Pittsburgh and Raleigh. They provide paper to five book publishers in Boston, New York, Chicago, Indianapolis and Memphis.


The costs of shipping one box of paper, the amount of paper (in boxes) available at each warehouse, and the amount of paper ordered (in boxes) by each publisher are found in the table below:

From / To

Boston

New York

Chicago

I ndianapolis

Memphis

Supply

Buffalo

9

7

11

12

13

700

Detroit

12

11

10

10

8

1000

Pittsburgh

11

9

9

10

10

1300

Raleigh

6

5

9

8

7

1400

Demand

500

1400

1100

800

600

Find the amounts to Ship from the following Warehouses to Publishers with the goal of Minimizing Transportation Costs

From / To

Boston

New York

Chicago

I ndianapolis

Memphis

Supply

Buffalo

9

7

11

12

13

700

Detroit

12

11

10

10

8

1000

Pittsburgh

11

9

9

10

10

1300

Raleigh

6

5

9

8

7

1400

Demand

500

1400

1100

800

600

Explanation / Answer

Formulating a Linear Program

Objective function = Minimize Sumproduct of ( Product allocation across area, Transport costs to each location )

Minimum Trasnportation Cost = 33700

From/ To

Product allocation

From/ To

Subject to Constraints

Demand in Boston = 500

Demand in NewYork = 1400

Demand in Chicago = 1100

Demand in Indianapolis = 800

Demand in Memphis = 600

Supply in Buffalo <= 700

Supply in Detroit <= 1000

Supply in Pittsburgh <= 1300

Supply in Raleigh <= 1400

Transportation Matrix

From/ To

Boston New York Chicago Indianapolis Memphis Supply Buffalo 9 7 11 12 13 700 Detroit 12 11 10 10 8 1000 Pittsburgh 11 9 9 10 10 1300 Raleigh 6 5 9 8 7 1400 Demand 500 1400 1100 800 600
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