Specializing in manufacturing ancillary products

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Reference no: EM133969885

Question

ABC is a company operating in the automobile industry, specializing in manufacturing ancillary products. It operates two manufacturing plants located in Kansas City and Santiago. The final products produced in these plants are then transported to various distribution facilities in Atlanta, Caracas, Melbourne, Mexico City, London, Shanghai, and Toronto. The table below gives the details regarding the shipping costs from the plants to the distribution centers, as well as the capacity of the manufacturing plants and the demand for the products at the distribution centers: Distribution Center Toronto Shanghai Mexico City Melbourne London Caracas Atlanta Capacity Kansas City $1.79 $2.13 $1.76 $2.34 $1.86 $1.90 $1.82 60000 Santiago $2.13 $2.03 $1.58 $1.80 $2.14 $1.26 $1.76 60000 Demand 5000 50000 4000 6000 40000 10000 60000 ABC is committed to ensuring efficient transportation and meeting the demand at each distribution facility while optimizing the utilization of its manufacturing plants.

Your task involves formulating and solving the problem to determine the total supply chain costs for ABC's automobile ancillary products. Additionally, you need to calculate the amount of demand that can be satisfied optimally within this supply chain. Draw the optimal flow of materials on a network diagram.

Reference no: EM133969885

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