Find the approximate minimum cost flow

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Reference no: EM131224346

Q1. Write the math program for the following bids in the lane procurement auction. Clearly define the variables, constraint and objective function

LANES                   SUPPLIER I          SUPPLIER II         NUMBER OF TRUCKLOAD

X -> Y                    570                            525                            10

Y -> Z                    621                            610                            10

X -> Z                    475                            500                            10

Include the additional constraints:

1) A minimum of 20% of volume for both the suppliers.

2) The following capacity constraints:

LANES                   SUPPLIER I          SUPPLIER II        

X -> Y                     2                              100                        

Y -> Z                     100                         4                             

X -> Z                     100                         2                             

3) Each supplier should get atleast 25% of the business (dollar value)

Solve the three model including the three constraints. Write the math program along with the constraints. Attach the Excel output and the answers (best value for variables and total cost).

Q2. Which of the following lanes can be combined in a combinatorial auction? Why?

X -> Y

Y -> Z

X -> Z

Q3. Who should win the bids for the following lanes in a combinatorial auction? Why? Which will be the winning bids?

LANES  

_________________________________________________________________

X -> Y                                     1                                              1              1

Y -> Z                                                     1                              1

Y -> X                                                                     1                              1

_________________________________________________________________

BID SUPPLIER I                  280         276         350         412         508

BID SUPPLIER II                 255         301         327         401         525

1. Find the approximate minimum cost flow for the following network using the math program discussed in class.

368_Fig.png

The distribution cost per ton for the arcs are as follows

1-4  = $ 280          1-5 = $ 325           4-6 = $ 75             4-7 = $ 220

2-4 = $ 175           2-5 = $ 175           5-6 = $ 150           5-7 = $ 100

3-4 = $ 250           3-5 = $ 225

The capacity of the warehouses are 400 units.

The minimum cost flow from suppliers to customers must use the warehouses. Hence ignore all the direct arcs from suppliers to customers. The supplier capacity and customer demands are listed in the figure. Write the math program along with the constraints. Attach the Excel output and the answers (best value for variables and total cost).

Reference no: EM131224346

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