Audibel exercise

A company called Audibel is planning to increase his monthly distribution from 4 warehouses to 7 stores in London. The demand for stores and monthly capacity distribution of warehouses is indicated in the following table. What is the optimal distribution strategy taking into account the next conditions?

– Stores 5 and 6 must be satisfied their demands because they are the best customers.

– We have to minimize the total cost

– There is the option of negotiating with the other stores .

Costs Store 1 Store 2 Store 3 Store 4 Store 5 Store 6 Store 7
Warehouse 1 2 8 5 10 9 4 2
Warehouse 2 4 5 2 10 12 15 5
Warehouse 3 7 10 6 9 3 8 4
Warehouse 4 3 6 3 7 15 5 3

 

The monthly demand of stores is the following:

STORE 1 STORE 2 STORE 3 STORE 4 STORE 5 STORE 6 STORE 7
150 100 60 120 60 120 40

 

The monthly capacity of warehouses is:

CAPACITY
WAREHOUSES 1 100
WAREHOUSES 2 200
WAREHOUSES 3 150
WAREHOUSES 4 50

Solution: Solver with excel, file can be sent by request

Total Costs: 1980

By: Aura Casaponsa, Anabel Ramos, Divya Shewani

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