CHAPTER 5
TRANSPORTATION, ASSIGNMENT, AND NETWORK
MODELS
Internet Case Study: Andrew Carter, Inc.
1. This case presents some of the basic concepts of aggregate planning using the transportation method.
The case involves solving four transportation problems, each for a different configuration of operating
plants. The optimal costs are as follows (see file Ch05 Internet Case Andrew Carter.XLS):
Configuration Variable cost Fixed cost Total cost
All open $179,730 $41,000 $220,730 (see sheet All)
2. Closing a plant without expanding the capacity of the remaining plants means unemployment. The
optimum solution indicates overtime production of 4,000 units at plant #3 and 0 overtime at plant #1. The