Ira Grace B. De Castro.

ACN1 | CAED101

TRANSSHIPMENT PROBLEM

Table 1. Plant Capacities and Shipping Costs per Unit from Plant to Warehouse
Warehouse
Plant 1 2 Capacity
1 4 7 450
2 8 5 600
3 5 6 380

Table 2. Customer Demand and Shipping Costs per Unit from Warehouse to Customer
Warehouse
Warehouse 1 2 3 4
1 6 4 8 4
2 3 6 7 7
Demand 300 300 300 400

Objective Function
Min 4x14 + 7x15 + 8x24 + 5x25 + 5x34 + 6x35 + 6x46 + 4x47 + 8x48 + 4x49 + 3x56 + 6x57 + 7x58 + 7x59

s.t.
x14 + x15 ≤ 450 Plant 1 Capacity
x24 + x25 ≤ 600 Plant 2 Capacity
x34 + x35 ≤ 380 Plant 3 Capacity
x46 + x47 + x48 + x49 = x14 + x24 + x34 Units Shipped Out and Into Warehouse 1
x56 + x57 + x58 + x59 = x15 + x25 + x35 Units Shipped Out and Into Warehouse 2
x46 + x56 = 300 Customer 1 Demand
x47 + x57 = 300 Customer 2 Demand
x48 + x58 = 300 Customer 3 Demand
x49 + x59 = 400 Customer 4 Demand
xij ≥ 0 for all i and j

Fig.1. Linear Programming Model

Fig.2. Network Presentation
EXCEL SOLVER – LINEAR PROGRAMMING

Variables Objective
New Value Minimize 11850
x 14 450
x 15 0 Constraints
x 24 0 No. Equality
x 25 600 1 450 ≤ 450
x 34 250 2 600 ≤ 600
x 35 0 3 250 ≤ 380
x 46 0 4 700 = 700
x 47 300 5 600 = 600
x 48 0 6 300 = 300
x 49 400 7 300 = 300
x 56 300 8 300 = 300
x 57 0 9 400 = 400
x 58 300
x 59 0

FINDINGS

Distribution Routes
From To Units Shipped Cost Per Unit ($) Total Cost (S)
Units shipped from plant to warehouse
Plant 1 Warehouse 1 450 4 1800
Plant 2 Warehouse 2 600 5 3000
Plant 3 Warehouse 1 250 5 1250
Units shipped out the warehouse to customer
Warehouse 1 Customer 2 300 4 1200
Warehouse 1 Customer 4 400 4 1600
Warehouse 2 Customer 1 300 3 900
Warehouse 2 Customer 3 300 7 2100
Total Cost 11850