Demand in four locations:
Location
Demand
A
500
B
750
C
1250
D
1500
Supply from three warehouses:
Warehouse
Supply
1
1000
2
1400
3
1800
Shipping Costs Per Item:
Shipping Cost
A
B
C
D
Warehouse 1
33
28
32
40
Warehouse 2
24
30
22
35
Warehouse 3
40
45
48
38
a)     
How many units should be shipped to each city
from each warehouse to minimize total costs?
b)     
The company just opened a new warehouse with a
supply of 1000 and with shipping costs of 15, 22, 25, 18 to locations A, B, C,
and D. How many units should be shipped from each warehouse to each location to
minimize costs?
c)      
The company wants to use all the supply
available in Warehouse 3. How many units should be shipped from each warehouse
to each location to minimize costs?
Question 2: Assignment
Problem
Your company wants you to
staff four jobs with four employees. Employee 1 cannot work on Job 2 and
Employee 3 cannot work on Job 4. The costs for each employee on each job they can
do is as follows:
Employee
Job 1
Job 2
Job 3
Job 4
1
7
8
4
2
6
4
6
9
3
5
6
7
4
8
5
3
6
How should the company assign
employees to jobs to minimize costs?
Question 3: Hub Selection
Problem
$/ton/mile
Tons
X cord
Y Cord
A
1.2
700
650
1100
B
1.3
640
550
800
C
1.8
800
630
730
D
1.3
355
780
480
E
1.7
550
520
960
F
1.4
675
900
350
a)    
Using the center
of gravity method, where should the hub be built to minimize costs?
b)    
Using nonlinear
programming, where should the hub be built to minimize costs?