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Linear Programming - Analytical Methods of Supply Chain Management

Problem 4

Hansen Controls has been awarded a contract for a large number of control panels. To
meet this demand, it will use its existing plants in San Diego and Houston, and consider
new plants in Tulsa, St. Louis, and Portland. Finished control panels are to be shipped to
Seattle, Denver, and Kansas City. Pertinent information is given in the table.
Shipping Cost/Unit to
Destination:

Seattle Denver Kansas city
5 7 8
10 8 6
9 4 3
12 6 2
4 10 11
3,000 8,000 9,000

Sources
San Diego
Houston
Tulsa
St. Louis
Portland
Construction
Cost
0
0
350,000
200,000
480,000
Demand
Capacity
of Source
2,500
2,500
10,000
10,000
10,000

Questions: Which plants will be used, how many units will be shipped from each
plant to each destination, and what is the value of the objective function? Be sure to
specify that all variables are integer.

Define the decision variables, the objective function, and the constraints within your
answer to this question. Then, solve the model using Excel Solver. Finally, copy your
spreadsheet into the appendix of your report and submit your Excel file to the dropbox.
4

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