The Lakeland Paper Company manufactures paper at three factories (F1, F2 and F3) and ships their products two depots (D1 and D2).
At the depots the products are repackaged and sent to five regional warehouses (W1, W2, W3, W4 and W5) around the country, in response to replenishment orders.
Each of the factories has a known monthly production capacity, and each of the three regional warehouses have placed their demands for the next month.
The following tables summarize the data that have been collected for this planning problem:
Factory
F1
F2
F3
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Depot
D1
D2
Requirement
(demand)
Transportation (shipping) costs
Depots
D1
D2
Capacity
$1.28
$1.33
$1.68
W1
$1.36
$1.38
$1.55
W2
2,500
2,500
2,500
7,500
Warehouses
W3
W4
W5
$0.60
$0.57
$0.42
$0.30
$0.32
$0.40
$0.44
$0.38
$0.68
$0.72
1,200
1,300
1,400
1,500
1,600
7,000
Assignments/Tasks
Develop a network model of this problem.
Develop a linear programming model of this problem.
Determine the optimal schedule of shipments to minimize total cost using Solver
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