Solution) A company transports products from Asian ports to U.S. cities where they are placed in warehouses.
Question: A company transports products from Asian ports to U.S. cities where they are placed in warehouses. Then the products are moved from the warehouses to their distribution centers. The shipping costs ($/ton) from the Asian ports to the U.S. cities and the available supplies (tons) at the Asian ports are given in the following table:
| U.S City | ||||
| Asian Port | 4. San Diego | 5. Seattle | 6. Vancouver | Supply |
| 1. Tokyo | $ 370 | $ 590 | $ 400 | 35 |
| 2. Singapore | 570 | 450 | 490 | 58 |
| 3. Shanghai | 340 | 460 | 430 | 37 |
The transportation costs ($/ton) from each U.S. city of the three distribution centers and the demands (tons) at the distribution centers are as follows:
| Distribution Center | |||
| Warehouse | 7. San Antonio | 8. Chicago | 9. Atlanta |
| 4. San Diego | $ 105 | $ 90 | $ 75 |
| 5. Seattle | 48 | 62 | 75 |
| 6. Vancouver | 55 | 43 | 61 |
| Demand | 40 | 25 | 30 |
Determine the optimal shipments between the Asian ports and the warehouses and the distributions centers to minimize total transportation costs. NOTE: You CANNOT use the transportation module in QM to solve this. It must be done with linear programming.
Deliverables: Word Document
