Minimizing Cost Shipping Strategy
ARE YOU LOOKING FOR RELIABLE MINIMIZING COST SHIPPING STRATEGY ASSIGNMENT HELP SERVICES? EXPERTSMINDS.COM IS RIGHT CHOICE AS YOUR STUDY PARTNER!
Question: Develop your capability in applying your skills and knowledge in a hypothetical situation and to build your problem solving and report writing skills.
Answer: Problem Formulation: The main objective of this study is to determine an optimal solution to minimize the shipping cost. In this study, the company taken into consideration produces mandarins at three plants (named as Plant 1, Plant 2 and Plant 3) which will be either shipped directly to customers (two customers are listed, namely, Customer 1 and Customer 2) or to warehouses (two warehouses, namely, Warehouse 1 and Warehouse 2) from where it was shipped to customers (two customers are listed, namely, Customer 1 and Customer 2). Thus, the main objective of this study is to minimize the shipping cost
Let P1, P2 and P3 represents the three plants from which mandarins are produced and W1 and W2 represents the two warehouses and C1 and C2 represents two customers respectively.
Pij represents mandarins shipped from Plant i to Plant j
Therefore, the objective function is
Minimize Z = 3*P12 + 3*P13 + 6*P1W1 + 7*P1W2 + 15 * P1C1 + 15 * P1C2 + 2 *P23 + 3*P21 + 5*P2W1 + 6*P2W2 + 16 * P2C1 + 16 * P2C2 + 3*P31 + 2*P32 + 7*P3W1 + 6*P3W2 + 14 * P3C1 + 15 * P3C2 + 3*W12 + 6*W1C1 + 8 * W1C2 + 3*W21 + 7*W2C1 + 7 * W2C2 + 4 * C12 + 4 * C21
Subject to the constraints
ΣP1j + ΣP1Wk + ΣP1Ck < = 350
ΣP2j + ΣP2Wk + ΣP2Ck < = 400
ΣP3j + ΣP3Wk + ΣP3Ck < = 450
ΣC2Wk + ΣPiC2< = 480
ΣC2Wk + ΣPiC2< = 460
P1, P2, P3, C1, C2, W1 and W2 > = 0
EXPERTSMINDS.COM GIVES ACCOUNTABILITY OF YOUR TIME AND MONEY – AVAIL TOP RESULTS ORIGINATED MINIMIZING COST SHIPPING STRATEGY ASSIGNMENT HELP SERVICES AT BEST RATES!
Problem Solving: The problem is solved using excel solver and the output screenshot of the workings is given below
Select the cell that contains the objective function and place it in the "Set Objective" box
Add the constraints by clicking Add Icon
Add the constraints one by one by clicking Add Icon and after adding the last constraints click Ok icon to return back to main menu
In "Select a Solving Method", select the option "Simplex LP" and click Solve
The Solver output is given below
24/7 AVAILABILITY OF TRUSTED MINIMIZING COST SHIPPING STRATEGY ASSIGNMENT WRITERS! ORDER ASSIGNMENTS FOR BETTER RESULTS!
The formula used to frame the linear programing problem is given below
Discussion: This study mainly focus on minimizing the shipping cost to the company that produces mandarins in their three plants.
The simplex linear programming problem method was used to solve this problem and the minimum shipping cost was found to be 18470 (in thousands of dollars)
This minimum shipping cost is obtained by shipping mandarins from
Plant 1 to Plant 2 → 200 mandarins
Plant 1 to Plant 3 → 200 mandarins
Plant 1 to Warehouse 1 → 50 mandarins
Plant 1 to Warehouse 2 → 100 mandarins
Plant 1 to Customer 1 → 200 mandarins
Plant 1 to Customer 2 → 200 mandarins
Plant 2 to Plant 1 → 200 mandarins
Plant 2 to Plant 3 → 200 mandarins
Plant 2 to Customer 1 → 80 mandarins
Plant 2 to Customer 2 → 60 mandarins
Plant 3 to Plant 1 → 150 mandarins
Plant 3 to Plant 2 → 200 mandarins
Thus, the minimum shipping cost is 18470 (in thousands of dollars)
Recommendation: Further the study can be improved by increasing the demand and capacity of the Mandarins which will certainly help the management to use the simulation techniques from which they can have a better idea of their further demands for mandarins.
SAVE DISTINCTION MARKS IN EACH MINIMIZING COST SHIPPING STRATEGY ASSIGNMENT WHICH IS WRITTEN BY OUR PROFESSIONAL WRITER!