Network Flow Models; Supply, Demand, and Transshipment Nodes; Optimization in Excel; Solver

Problem:
A furniture manufacturer has warehouses in cities represented by nodes 1, 2, and 3 in Figures 5.34.  The values on the arcs indicate the per unit shipping costs required to transport living room suites at each warehouse is indicated by the negative number next to nodes 1, 2, and 3.  The demand for living room suites is indicated by the positive number next to the remaining nodes.  

a) Identify the supply, demand, and transshipment nodes in this problem.
b) Use Solver to determine the least costly shipping plan for this problem and provide Excel spreadsheet with formulas and solution (Solver).  

Network Models; Optimization Problem using Excel add-in Solver

This is a problem (5-14) from the textbook by Cliff Ragsdale, "Spreadsheet Modeling and Decision Analysis".

This problem requires the use of Excel and the add-in, called Solver.  The course is Excel-based and Solver is the optimization application used for all problems.  

The problem appears in this text box and is also attached as a MS Word file, so it is sure to transmit legibly.  The MS Word version will likely need to be the document from which to work, as the text box does not allow information to be transmitted well (see attached MS Word doc below).

Attached file(s):

LP 3ab.doc  View File

Network Flow Model_Figure 5.34.doc  View File