Microsoft Excel 12.

0 Answer Report
Worksheet: [8289359.xls]Sheet1
Report Created: 30-06-2012 22:27:18

Target Cell (Max)

Cell Name Original Value Final Value
$L$34 Cost= Max 1790 1790

Adjustable Cells
Cell Name Original Value Final Value
$H$35 Initial Solution 1 1
$I$35 m4 1 1
$J$35 l4 0 0
$H$36 Initial Solution 2 2
$I$36 m4 1 1
$J$36 l4 0 0
$H$37 Initial Solution 2 2
$I$37 m4 0 0
$J$37 l4 0 0
$H$38 Initial Solution 2 2
$I$38 m4 0 0
$J$38 l4 0 0

Constraints
Cell Name Cell Value Formula Status Slack
$N$28 4000*s1+6000m1+80000*l1 100000 $N$28<=$L$28 Binding 0
$N$29 4000*s2+6000m2+80000*l2 140000 $N$29<=$L$29 Binding 0
$N$30 4000*s3+6000m3+80000*l3 80000 $N$30<=$L$30 Binding 0
$N$31 4000*s4+6000m4+80000*l4 80000 $N$31<=$L$31 Binding 0
$N$28 4000*s1+6000m1+80000*l1 100000 $N$28>=$K$28 Not Binding 75000
$N$29 4000*s2+6000m2+80000*l2 140000 $N$29>=$K$29 Not Binding 105000
$N$30 4000*s3+6000m3+80000*l3 80000 $N$30>=$K$30 Not Binding 60000
$N$31 4000*s4+6000m4+80000*l4 80000 $N$31>=$K$31 Not Binding 60000
$H$35 Initial Solution 1 $H$35=integer Binding 0
$I$35 m4 1 $I$35=integer Binding 0
$J$35 l4 0 $J$35=integer Binding 0
$H$36 Initial Solution 2 $H$36=integer Binding 0
$I$36 m4 1 $I$36=integer Binding 0
$J$36 l4 0 $J$36=integer Binding 0
$H$37 Initial Solution 2 $H$37=integer Binding 0
$I$37 m4 0 $I$37=integer Binding 0
$J$37 l4 0 $J$37=integer Binding 0
$H$38 Initial Solution 2 $H$38=integer Binding 0
$I$38 m4 0 $I$38=integer Binding 0
$J$38 l4 0 $J$38=integer Binding 0
A European manufacturer of industrial furniture has a factory located in Munich and four warehouses in Western Europe.
The warehouses collect customer orders, which are then shipped from factory. Upon receipt, the warehouse distributes custo
Daily demand at each of the four warehouses along with distance from Munich is as shown:
Warehouse Daily Demand (kg) Distance (km)

Daily
Warehou Demand Distance
se (kg) (km)
Milan 25,000 800
Paris 35,000 1,000
Copenhagen 20,000 600
Madrid 20,000 1,300
All shipments are by truck. Three truck sizes are available, with capacities of 40,000 (small), 60,000 (medium), and 80,000 kg (

Small: 100 + 0.1x euros

Medium: 125 + .1x euros
Large: 150 + 0.1x euros
X is the distance to be traveled in kilometers. For replenishment frequency varying between one and four days for each wareh
What other factors should be considered before deciding on the replenishment frequency?

Solution
Let s1 no. of small trucks to Milan Obj: MinZ: 800s1+1000s2+600s3+1300s4)*(0.1)
s2 no. of small trucks to Paris
s3 no. of small trucks to Copenhagen 40000 60000 80000
s4 no. of small trucks tomadrid s1 m1 l1
m1 no. of medium trucks to Milan s2 m2 l2
m2 no. of medium trucks to Paris s3 m3 l3
m3 no. of medium trucks to Copenhagen s4 m4 l4
m4 no. of medium trucks tomadrid
l1 no. of large trucks to Milan constraints
l2 no. of large trucks to Paris 4000*s1+6000m1+80000*l1
l3 no. of large trucks to Copenhagen 4000*s2+6000m2+80000*l2
l4 no. of large trucks tomadrid 4000*s3+6000m3+80000*l3
4000*s4+6000m4+80000*l4

Initial Solution
40000 60000 80000
1 1 0
2 1 0
2 0 0
2 0 0
es in Western Europe.
arehouse distributes customer orders using small trucks.

(medium), and 80,000 kg (large). Transportation costs for the three types of trucks are:

d four days for each warehouse, identify the optimal transportation option and the associated cost.

00s2+600s3+1300s4)*(0.1)+(800m1+1000m2+600m3+1300m4)*(0.1)+(800l1+1000l2+600l3+1300l4)*(0.1)+(s1+s2+s3+s4)*100+(m1+m2+m

Min Max Constraints

25000 100000 100000
35000 140000 140000
20000 80000 80000
20000 80000 80000

Cost= 1790

Optimum Cost= 1790

I small truck amd 1 medium truck to Milan
2 small truck and 1 medium truck to Paris
2 small truck to Copenhagen
2 small truck to Madrid

Other factor which can be considered are customer loss cost, backorder cost and inventory cost.
s2+s3+s4)*100+(m1+m2+m3+m4)*(125)+(l1+l2+l3+l4)*(150)