2. Jackson Shipping has two supply depots in Atlanta and Dallas. Each can hold 200 shipping pods at a time. Each week, they ship pods to four locations: New York, Los Angeles, Chicago, and Miami. Costs are shown in the table below. New York needs 110 units, Los Angeles needs 120, Miami 75, and Chicago 85 each week. There are shipping limits however, Dallas can only send 30 units to Chicago and Atlanta can only route 40 to Miami. New York Los Angeles Chicago Miami Atlanta 20 70 25 15 Dallas 35 35 15 25 a) What is the standard format for this problem? b) What routes will be shipped and in what numbers to minimize costs?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter6: Optimization Models With Integer Variables
Section6.5: Set-covering And Location-assignment Models
Problem 34P
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2. Jackson Shipping has two supply depots in Atlanta and Dallas. Each can hold 200 shipping
pods at a time. Each week, they ship pods to four locations: New York, Los Angeles,
Chicago, and Miami. Costs are shown in the table below. New York needs 110 units, Los
Angeles needs 120, Miami 75, and Chicago 85 each week. There are shipping limits
however, Dallas can only send 30 units to Chicago and Atlanta can only route 40 to Miami.
New York
Los Angeles
Chicago
Miami
Atlanta
20
70
25
15
Dallas
35
35
15
25
a) What is the standard format for this problem?
b) What routes will be shipped and in what numbers to minimize costs?
c) What is the reduced cost of the Atlanta to Los Angeles line? What does this mean?
d) What is the shadow price on Miami? What does this mean?
Transcribed Image Text:2. Jackson Shipping has two supply depots in Atlanta and Dallas. Each can hold 200 shipping pods at a time. Each week, they ship pods to four locations: New York, Los Angeles, Chicago, and Miami. Costs are shown in the table below. New York needs 110 units, Los Angeles needs 120, Miami 75, and Chicago 85 each week. There are shipping limits however, Dallas can only send 30 units to Chicago and Atlanta can only route 40 to Miami. New York Los Angeles Chicago Miami Atlanta 20 70 25 15 Dallas 35 35 15 25 a) What is the standard format for this problem? b) What routes will be shipped and in what numbers to minimize costs? c) What is the reduced cost of the Atlanta to Los Angeles line? What does this mean? d) What is the shadow price on Miami? What does this mean?
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