Linear transportation problems in business

Linear transportation problems in business

Week 6: Network ModelingThe purpose of this assignment is to introduce how network models can be used to solve a business problem.Using specified data files, chapter example files, and templates from the “Topic 6 Student Data, Template, and Example Files” topic material, complete Chapter 14, Problems 15, 16, 17, 20, and 88. Use Microsoft Excel’s Solver Add-In to complete these problems. For problems 17, 20, and 88, run the Solver’s Answer and Sensitivity Reports. Interpret and summarize the key results.Problem #15:In the RedBrand example, suppose the plants cannot ship to each other and the customers cannot ship to each other. Modify the model appropriately, and rerun Solver. How much does the total cost increase because of these disallowed routes?Problem #16:Modify the RedBrand example so that all flows must be from plants to warehouses and from warehouses to customers. Disallow all other arcs. How much does this restriction cost RedBrand, relative to the original optimal shipping cost?Problem #17:In the RedBrand example, the costs for shipping-from plants or warehouses to customer 2 were purposely made high so that it would be optimal to ship to customer 1 and then let customer-1 ship to customer 2. Use SolverTable appropriately to do the following. Decrease the unit shipping costs from plants and warehouses to customer 1, all by the same amount, until it is no longer optimal for customer 1 to ship to customer 2. Describe what happens to the optimal shipping plan at this point.Problem #20:Suppose in the original Grand Prix example that the routes from plant 2 to region 1 and from plant 3 to region 3 are not allowed. (Perhaps there are no railroad lines for these routes.) How would you modify the original model (Figure 14.14) to rule out these routes? How would you modify the alternative model (Figure-14.19) to do so? Discuss the pros and cons of these two approaches.Problem #88:An oil company produces oil from two wells. Well-1 can produce up to 150,000 barrels per day, and well 2 can produce up to 200,000 barrels per day. It is possible to ship oil directly from the wells to the company’s customers in Los Angeles and New York. Alternatively, the company could transport oil to the ports of Mobile and Galveston and then ship it by tanker to New York or Los Angeles, respectively. Los Angeles requires 160,000 barrels per day, and New York requires 140,000 barrels per day. The costs of shipping 1000 barrels between various locations are shown in the file P14_88.xlsx, where a blank indicates shipments that are not allowed. Determinehow to minimize the transport costs in meeting the oil demands of Los Angeles and New York.To receive full credit on the assignment, complete the following.Ensure that all Solver settings are defined through the use of the Solver dialog box.Ensure that Excel files include the associated cell functions and/or formulas if functions and/or formulas are used.Include a written response to all narrative questions presented in the problem by placing it in the associated Excel file.Include Answer and Sensitivity Reports interpretation and summary of key results.Place each problem in its own Excel file. Ensure that your first and last name are in your Excel file names.APA style is not required, but solid academic writing is expected.

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