abhishek transshipment

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Case Problem : Distribution System design

Abhishek Saxena PGDMA 1101

Case Overview Darby Company Product : Electric Power MeterSN

Production Plant Per unit Production CostEl Paso San Bernardino $10.50 $10.00

Capacity30,000 20,000

1. 2.

Distribution Centers :1. Fort Worth 2. Santa Fe 3. Las Vegas

Per unit Shipping Cost (in $) from Production plant to Distribution centers Plant El Paso Fort Worth 3.20 Santa Fe 2.20 3.90 Las Vegas 4.20 1.20

San -----Bernardino

No shipments are allowed from the San Bernardino to Fort Worth

Quarterly Demand ForecastCustomer ZoneDallas San Antonio Wichita Kansas City Denver Salt Lake City Phoenix Los Angeles San Diego

Demand(Meters)6300 4880 2130 1210 6120 4830 2750 8580 4460

Shipping Cost ($)Customer Zones (Distribution Centres)

Fort Worth

Santa Fe 5.2 5.4 4.5 6.0 2.7 4.7 3.4 3.3 2.7

Las Vegas --------5.4 3.3 2.4 2.1 2.5

Dallas 0.3 San Antonio 2.1 Wichita Kansas City Denver Salt Lake City Phoenix Los Angeles San Diego 3.1 4.4 6.0 ---------

In current distribution system, demand at the Dallas, San Antonio, Wichita, and Kansas City customer zones is satisfied by shipments from the Fort Worth. In same way, the Denver, Salt Lake City and Phoenix customer zones are served by Santa Fe and the Los Angeles and San Diego customer zones are served by the Las Vegas distribution centre.

6. Dallas 3. Ft. Worth 1. El Paso 30,000 4. Santa Fe 2.1 7. San Antonio 8. Wichita

6300 4880 2130

9. Kansas City 10. Denver 11. Salt Lake City 12. Phoenix

1210

6120

2. San Bernar dino 20,000 5. Las Vegas 2.1

4830

2750 8580 4460

13. Los Angeles 14. San Diego

Decision variablesX(1,3) X(1,4) X(1,5) X(2,4) X(2,5) X(3,6) X(3,7) X(3,8) X(3,9) Shipping Cost from 1 to 3 Shipping Cost from 1 to 4 Shipping Cost from 1 to 5 Shipping Cost from 2 to 4 Shipping Cost from 2 to 5 Shipping Cost from 3 to 6 Shipping Cost from 3 to 7 Shipping Cost from 3 to 8 Shipping Cost from 3 to 9

Decision variablesX(4,10) X(4,11) X(4,12) X(5,13) X(5,14) Shipping Cost from 4 to 10 Shipping Cost from 4 to 11 Shipping Cost from 4 to 12 Shipping Cost from 5 to 13 Shipping Cost from 5 to 14

ConstraintsX(1,3) + X(1,4) + X(1,5)