Explore BrainMass

Explore BrainMass

    Minimizing shipping costs

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The three blood banks in Franklin County are coordinated through a central office that facilitates blood delivery to four hospitals in the region. The cost to ship a standard container of blood from each bank to each hospital is shown in the table below. Also given are the biweekly number of containers available at each bank and the biweekly number of containers of blood needed at each hospital.

    How many shipments should be made biweekly from each blood bank to each hospital so that total shipment costs are minimized?

    _____________________ TO _______________________

    FROM Hospital 1 Hospital 2 Hospital 3 Hospital 4 SUPPLY
    Bank 1 $8 $9 $11 $16 50
    Bank 2 $12 $7 $5 $8 80
    Bank 3 $14 $10 $6 $7 120
    DEMAND 90 70 40 50 250

    © BrainMass Inc. brainmass.com June 3, 2020, 7:24 pm ad1c9bdddf
    https://brainmass.com/business/business-management/97030

    Solution Preview

    The three blood banks in Franklin County are coordinated through a central office that facilitates blood delivery to four hospitals in the region. The cost to ship a standard container of blood from each bank to each hospital is shown in the table below. Also given are the biweekly number of containers available at each bank and the biweekly number of containers of blood needed at each hospital.

    How many shipments should be made biweekly from each blood bank to each hospital so that total shipment costs are minimized?

    _____________________ TO _______________________

    FROM Hospital 1 Hospital 2 Hospital 3 Hospital 4 SUPPLY
    Bank 1 $8 $9 $11 $16 50
    Bank 2 $12 $7 $5 $8 80
    Bank 3 $14 $10 $6 $7 120
    DEMAND 90 70 40 50 250

    We will use Vogel's approximation method (VAM) to solve the problem. VAM tackles the problem of finding a good initial solution by taking into account the costs associated with each route alternative. To ...

    Solution Summary

    This solution is comprised of a detailed explanation to find how many shipments should be made biweekly from each blood bank to each hospital so that total shipment costs are minimized.

    $2.19

    ADVERTISEMENT