Carlton Pharmaceuticals moves its product line from three sources (Cleveland, De
ID: 464258 • Letter: C
Question
Carlton Pharmaceuticals moves its product line from three sources (Cleveland, Detroit, Greensboro) to four destinations (Boston, Richmond, Atlanta and according to data in the following table. It wishes to do so at minimum transportation cost. Carlton's associated transportation network is shown below. In the sketch below each decision variable is an Xij, representing the amount to be transported from supply node i to demand node j. In the following assume that all of the demand at each destination node must be met, but it is not necessary to utilize all of the supply available at a supply node. You will have to set this problem up and solve it using Excel SOLVER. Please make certain your supply constraints are of theExplanation / Answer
The problem does not need to be solved to answer.
We see that on increaing Richmond's demand to 800, D2=800 now..
Now
Total supply = S1+S2+S3 = 1200+1000+800 = 3000
Total Demand = D1+D2+D3+D4 = 1100+800+750+750 = 3400
So, we do not need to use the transportation algorithm and sensitivity report. Since the Total Demand exceeds total supply, our problem becomes infeasible as the demand of atleast one center will not be met.