Adirondack Paper Mills, Inc., operates paper plants in Augusta, Maine and Tupper Lake, New York. War
Question: Adirondack Paper Mills, Inc., operates paper plants in Augusta, Maine and Tupper Lake, New York. Warehouse facilities are located in Albany, New York and Portsmouth, New Hampshire. Distributors are located in Boston, New York and Philadelphia. The plan capacities and distributor demands for the next month are as follows:
.
| Plant | Capacity | Distributor | Demand |
| Augusta | 300 | Boston | 150 |
| Tupper Lake | 100 | New York | 100 |
| Philadelphia | 150 |
The unit transportation costs (in $) for shipments from the two plants to the two warehouses and from the two warehouses to the three distributors are as follows:
| Warehouse | ||||||
| Plant | Albany | Portsmouth | ||||
| Augusta | 7 | 5 | ||||
| Tupper Lake | 3 | 4 | ||||
| Distributor | ||||||
| Warehouse | Boston | New York | Philadelphia | |||
| Albany | 8 | 5 | 7 | |||
| Portsmouth | 5 | 6 | 10 | |||
Also assume that shipments can be made between the warehouses at a cost of $4 each way and assume that shipments can be made directly from the Tupper Lake, NY plant directly to the New York Distributor at a cost of $2
a. Draw a network representation for this problem.
b. Formulate this problem as a transshipment linear programming model with the objective of minimizing shipping costs.
Deliverables: Word Document
