A company has 4 plants: Plant 1, Plant 2, Plant 3, and Plant 4. All the plants make the same product The company sells the product in 4 different cities: City 1, City 2, City 3, City 4. Maximum production (in thousands of units) that is possible at the 4 plants are given respectively by (Plant 1 to Plant 4): 5, 25, 10, and 15. Your forecast shows that the demand for the product (in thousands of units) in each of the cities is given by (City 1 to City 4): 15, 7, 9, 10. Your firm does not want to have any backorders or lost demand. The production & transportation cost for getting a product from any given plant to any given city if given blow: Plant 1 Plant 2 Plant 3 Plant 4 Production and Transportation Cost per 1000 units (Thousand $) City 1 City 2 1070 1260 1825 780 800 1540 1400 City 3 1685 1070 2425 1355 843 City 4 1530 1100 500 1045 You need to decide which plant will serve which city and how much. Find the optimal way to serve the demands in all the cities. What is the optimal cost?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 46P
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A company has 4 plants: Plant 1, Plant 2, Plant 3, and Plant 4. All the plants make the same product The company sells the product in 4
different cities: City 1, City 2, City 3, City 4. Maximum production (in thousands of units) that is possible at the 4 plants are given respectively
by (Plant 1 to Plant 4): 5, 25, 10, and 15. Your forecast shows that the demand for the product (in thousands of units) in each of the cities is
given by (City 1 to City 4): 15, 7, 9, 10. Your firm does not want to have any backorders or lost demand. The production & transportation cost
for getting a product from any given plant to any given city if given blow:
Plant 1
Plant 2
Plant 3
Plant 4
Production and Transportation Cost per
1000 units (Thousand $)
City 1 City 2
1070
1260
1825
780
800
City 3
1400
1685
1540 1070
2425
1355 843
City 4
1530
1100
500
1045
You need to decide which plant will serve which city and how much. Find the optimal way to serve the demands in all the cities. What is the
optimal cost?
Transcribed Image Text:A company has 4 plants: Plant 1, Plant 2, Plant 3, and Plant 4. All the plants make the same product The company sells the product in 4 different cities: City 1, City 2, City 3, City 4. Maximum production (in thousands of units) that is possible at the 4 plants are given respectively by (Plant 1 to Plant 4): 5, 25, 10, and 15. Your forecast shows that the demand for the product (in thousands of units) in each of the cities is given by (City 1 to City 4): 15, 7, 9, 10. Your firm does not want to have any backorders or lost demand. The production & transportation cost for getting a product from any given plant to any given city if given blow: Plant 1 Plant 2 Plant 3 Plant 4 Production and Transportation Cost per 1000 units (Thousand $) City 1 City 2 1070 1260 1825 780 800 City 3 1400 1685 1540 1070 2425 1355 843 City 4 1530 1100 500 1045 You need to decide which plant will serve which city and how much. Find the optimal way to serve the demands in all the cities. What is the optimal cost?
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