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Northeast Florida's crushed lime rock shipping requirements

Please show the solution using POM-QM software for Windows.

Roads for your construction company currently have three construction jobs in Northeast Florida requiring crushed lime rock. Three pits are available to service the company's needs. The sources, destination, tonnage available and cost per tone of shipment are given in the table below.

Sources Destinations Max tonnage
cost per ton available
From to job 1 to job 2 to job 3
Pit Starke $6 $9 $10 150
Pit Baldwin $10 $11 $11 175
Pit Jonesville $4 $5 $12 355
Job needs 200 100 300 600

a. Determine the optimal shipping assignment to minimize cost, based on shipping cost alone.

b. The cost per ton to purchase the rock differs from pit to pit.
Stark charges $0.67 per ton
Baldwin $0.65 per ton
and Jonesville charges $0.80 per ton

c. Does this change the shipping assignment for minimizing cost? If so, what is
the new assignment?

Solution Preview

Please see the attached files.

a) As per the given information the optimal shipping assignment is as follows

(untitled) Solution
From To Shipment Cost per unit Shipment cost
Source 1 Destination 3 150 10 1500
Source 2 Destination 3 150 11 1650
Source 2 Dummy 25 0 0
Source 3 Destination 1 200 4 800
Source 3 Destination 2 100 5 500
Source ...

Solution Summary

The expert analyzes Northeast Florida's crushed lime risk shipping requirements.