Purpose The purpose of this assignment is for you to understand the algorithms used to determine what product to ship from whom and where based on the costs of shipment.
You will be using the Transportation Model discussed in the Supplement to Chapter 11. This is an important factor in supply chain management. The product is transported from a number of sources to a number of destinations at the minimum possible cost and each source is able to supply a fixed number of units. Each destination has a fixed demand. Companies never ship more than demand, so if supply is greater than demand, it remains at the source.
You will be using a linear programming application, Solver, which is an add-on to excel. I illustrate how to add this to excel in the Week 11 videos. Task Complete problems S11.8 and S11.9. These problems are found in the Supplement to Chapter 11 reading. Open the reading, go to sources, and click on problems. Use the template provided. Do not alter this template, it makes grading difficult and alterations are not needed. Add in the formulations needed in the excel spreadsheet. Open solver and complete all the necessary fields. Run solver Address any questions asked about the problems. You must use solver to find the correct answers. I will run the solver to veriiqufy your set up is correct.