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Category > Management Posted 29 Mar 2018 My Price 10.00

South Coast Plaza

A large retailer is planning to open a new store to add to its two existing retail stores (A & B). Three locations in California are currently under consideration for the new store: South Coast Plaza (SCP), Fashion Island (FI), and Laguna Hills (LH). Each of these new stores under consideration will have a demand of 500 units. The product (construction building toy sets) is currently supplied from three warehouses (1, 2, and 3). Warehouses 1, 2 and 3 can each supply a total of 600, 340, and 200 units, respectively. The following two tables provide additional Information regarding supply/demand and shipping costs per unit reflected in $.

 

Shipping costs/unit
 

SCP

FI

LH

Warehouse 1

$       4.00

$       7.00

$       5.00

Warehouse 2

$    11.00

$       6.00

$       5.00

Warehouse 3

$       5.00

$       5.00

$       6.00
 

A

B

Supply

Warehouse 1

$    15.00

$       9.00

600

Warehouse 2

$    10.00

$       7.00

340

Warehouse 3

$    14.00

$    18.00

200

Demand:

400

500

  

Formulate this problem as a linear programming (LP) problem by identifying the decision variables (e.g., let X1 = no. of units shipped from A to B, etc.), objective function (e.g., Min $15X1 + $9X2 +….), and all relevant constraints for the South Coast Plaza (SCP) location only (e.g., the relevant supply and demand constraints).

Explain your answer like I'm five; I have no clue about this.

Answers

Maurice Tutor
(5)
Status NEW Posted 29 Mar 2018 01:03 PM My Price 10.00

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