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304 BUSINESS ANALYTICS MODULE C TRA N S P O R T A T I O N MO D E L S
A2 5 10 15 8 2
B3 14 15 8 6 1
→ + − + − = +
→ + − + − = +
Copyright ©2014 Pearson Education, Inc.
306 BUSINESS ANALYTICS MODULE C TR A N S P O R T A T I O N MO D E L S
C.18 Considering Fontainebleau, we have:
Optimal cost = $1,530,000
Considering Dublin, we have:
308 BUSINESS ANALYTICS MODULE C TR A N S P O R T A T I O N MO D E L S
(a) Existing pattern:
Initial solution—Northwest corner rule:
3 labor hours to build, then $3 (3 1) should be deducted
from each price quoted for shipments from Madison.
Copyright ©2014 Pearson Education, Inc.
310 BUSINESS ANALYTICS MODULE C TR A N S P O R T A T I O N MO D E L S
ADDITIONAL CASE STUDY*
CONSOLIDATED BOTTLING: B
180 and solve for the total cost, as shown in the table.
City
Total Cost with 130
Total Cost with 180
Columbus
3,556
3,406
Indianapolis
3,405
3,205
Miami
3,674
3,674
Montreal
3,511
3,511
Raleigh
3,779
3,729
San Francisco
3,375
3,175
Clearly, the solution is to add 180 to San Francisco. The new and
old routes can be compared from the solution Tables 1 and 2,
below. (Note: All numbers are in thousands.)
Optimal cost = 3,175 miles
Optimal solution:
Total cost = 200 10 + 100 20 + 100 + 50 15 + 150 1
+ 150 30 = $11,400
Shipments
From
To
Units
From
To
Units
Albuquerque
Albuquerque
24
Denver
Denver
51
Albuquerque
Los Angeles
124
Detroit
Detroit
121
Baltimore
Baltimore
62
Houston
Houston
123
Baltimore
Columbus
53
Kansas City
Chicago
154
Baltimore
Detroit
30
Kansas City
Indianapolis
36
Baltimore
Miami
33
Kansas City
Kansas City
50
Baltimore
Montreal
42
Los Angeles
Los Angeles
157
Baltimore
Raleigh
12
Portland
Portland
38
Boston
Boston
64
Portland
San Francisco
71
Boston
Montreal
79
St. Paul
Indianapolis
38
Chicago
Chicago
182
St. Paul
St. Paul
30
Dallas
Dallas
84
Minimum total cost = 4,037 Note: Alternate optimal solutions exist.
Table 1:
Copyright ©2014 Pearson Education, Inc.
306 BUSINESS ANALYTICS MODULE C TR A N S P O R T A T I O N MO D E L S
C.18 Considering Fontainebleau, we have:
Optimal cost = $1,530,000
Considering Dublin, we have:
308 BUSINESS ANALYTICS MODULE C TR A N S P O R T A T I O N MO D E L S
(a) Existing pattern:
Initial solution—Northwest corner rule:
3 labor hours to build, then $3 (3 1) should be deducted
from each price quoted for shipments from Madison.
Copyright ©2014 Pearson Education, Inc.
310 BUSINESS ANALYTICS MODULE C TR A N S P O R T A T I O N MO D E L S
ADDITIONAL CASE STUDY*
CONSOLIDATED BOTTLING: B
180 and solve for the total cost, as shown in the table.
City
Total Cost with 130
Total Cost with 180
Columbus
3,556
3,406
Indianapolis
3,405
3,205
Miami
3,674
3,674
Montreal
3,511
3,511
Raleigh
3,779
3,729
San Francisco
3,375
3,175
Clearly, the solution is to add 180 to San Francisco. The new and
old routes can be compared from the solution Tables 1 and 2,
below. (Note: All numbers are in thousands.)
Optimal cost = 3,175 miles
Optimal solution:
Total cost = 200 10 + 100 20 + 100 + 50 15 + 150 1
+ 150 30 = $11,400
Shipments
From
To
Units
From
To
Units
Albuquerque
Albuquerque
24
Denver
Denver
51
Albuquerque
Los Angeles
124
Detroit
Detroit
121
Baltimore
Baltimore
62
Houston
Houston
123
Baltimore
Columbus
53
Kansas City
Chicago
154
Baltimore
Detroit
30
Kansas City
Indianapolis
36
Baltimore
Miami
33
Kansas City
Kansas City
50
Baltimore
Montreal
42
Los Angeles
Los Angeles
157
Baltimore
Raleigh
12
Portland
Portland
38
Boston
Boston
64
Portland
San Francisco
71
Boston
Montreal
79
St. Paul
Indianapolis
38
Chicago
Chicago
182
St. Paul
St. Paul
30
Dallas
Dallas
84
Minimum total cost = 4,037 Note: Alternate optimal solutions exist.
Table 1:
