Reconsider Problem 6.5. Suppose now that, for administrative convenience, management has decided that all 130 units per month needed at the center in Los Angeles must come from the Stuttgart factory (node ST) and all 50 units per month needed at the center in Seattle must come from the Berlin factory (node BE). For each of these centers, Karl Schmidt wants to determine the shipping plan that will minimize the total shipping cost.
a. For the center in Los Angeles, formulate a network model for this problem as a minimum-cost flow problem by inserting all the necessary data into the network shown in Figure 6.6. (Use the format depicted in Figure 6.3 to display these data.)
FIGURE 6.3: A network model for the Unlimited Co. problem as a minimum-cost flow problem.
FIGURE 6.6: The BMZ Co. network from its main factory in Stuttgart, Germany, to a center in Los Angeles.
b. Formulate and solve a spreadsheet model for the problem formulated in part a.
c. For the center in Seattle, draw its network emanating from the Berlin factory at node BE.
d. Repeat part a for the center in Seattle by using the network drawn in part c.
e. Formulate and solve a spreadsheet model for the problem formulated in part d.
f. Add the total shipping costs obtained in parts b and e. Compare this sum with the total shipping cost obtained in part c of Problem 6.5 (as given in the back of the book).
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