Transportation Practice Case

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To

From Dallas Huston Chicago LA


Dallas 0 - 9 14
Huston - 0 16 13
Chicago - - 0 7
LA - - 7 0
SF - - -
NY - - -

From Dallas Huston Chicago LA


Dallas 0 0 160 0 160
Huston 0 0 0 200 200
0 0 160 200
= = <= <=
0 0 280 280 obj1

SF NY dummy
Chicago 0 80 80 160 =
LA 140 60 0 200 =
140 140 80
= = =
140 140 80 obj2

total cost 8600


A company manufactures a product in two cities, which are Dallas and Houston. The daily production c
SF NY Dallas and Houston are 160 and 200, respectively. Products are shipped by air to customers in San Fra
26 29 New York. The customers in each city require 140 units of the product per day. Because of the deregul
27 26 fares, the company believes that it may be cheaper to first fly some products to Chicago or Los Angele
17 18 fly the products to their final destinations. The costs of flying one unit of the product between these c
15 17 shown in the table below.The company wants to minimize the total cost of daily shipments of the requ
0 - products to its customers.
- 0

From Dallas Huston Chicago LA


<= 160 Dallas 99 99 9 14
<= 200 Huston 99 99 16 13

4040

SF NY dummy
160 Chicago 17 18 0
200 LA 15 17 0

4560
nd Houston. The daily production capacities at
ped by air to customers in San Francisco and
ct per day. Because of the deregulation of air
products to Chicago or Los Angeles and then
t of the product between these cities are
cost of daily shipments of the required

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