Supply Chain Management Excel problems

5- Marc Hernandez’s construction firm currently has three projects in progress. Each requires a specific supply of gravel. There are three gravel pits available to provide for Hernandez’s needs, but shipping costs differ from location to location. The following table summarizes the transportation costs (per ton):

To

From

Project 1

Project 2

Project 3

Tonnage allowance

Central pit

$9

$8

$7

3000

Rock pit

$7

$11

$6

4000

Acme pit

$4

$3

$12

6000

Project demand (tons)

2500

3750

4850

Determine Hernandez’s optimal shipping quantities to minimize total transportation costs. (30 points)
6- The Lilly Snack Company is considering adding an additional plant to its three existing facilities in Wise, Virginia; Humbolt, Tennessee; and Cleveland, Georgia to serve three large markets in the Southeast. Two locations – Brevard, North Carolina, and Laurens, South Carolina – are being considered. The transportation costs per pallet are shown in the following table. Which site would you recommend? (Hint: we don’t have fixed facility cost in this problem. You should solve the assignment problem once for Brevard, and once for Laurens, and then compare the total cost of both options) (30 points)

From

To

Wise

Humbolt

Cleveland

Brevard

Laurens

Demand

Charlotte

$20

$17

$21

$29

$27

250

Greenville

$25

$27

$20

$30

$28

200

Atlanta

$22

$25

$22

$30

$31

350

Capacity

300

200

150

150

150

Which site would you recommend?

Laurens is the site recommended to use, as it is cheaper than Brevard by $150

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