Heineken Transportation Cost

2 Utrecht 3 Groningen 4 Rotterdam 5 Zwolle 6 Leeuwarden

Amsterdam $30 $80 $40 $115 $150
Zoeterwoude $0 $85 $50 $45 $50

Decision Variables: Amount of beer required by distributors in Liters

Utrecht Groningen Rotterdam Zwolle Leeuwarden
Amsterdam 1000 100 500 900 500
Zoeterwoude 0 500 500 900 500
Total Cost $369,500

Supply Constraints
Amsterdam 3000 <= 2000
Zoeterwoude 2400 <= 3000
Demand Constraints
Utrecht 1000 >= 1000
Groningen 600 >= 600
Rotterdam 1000 >= 800
Zwolle 1800 >= 1700
Leeuwarden 1000 >= 700
Supply
2000L
3000L
 2
Plan A
Period Demand Production Inventory(End of Period) Sub Contract Cost
€ 25.00 € 60.00
June 1000 1000 0 0 €0
July 1000 1000 0 0 €0
August 1200 1000 0 200 € 12,000.00
September 1400 1000 0 400 € 24,000.00
October 1800 1000 0 800 € 48,000.00
November 1800 1000 0 800 € 48,000.00
December 1600 1000 0 600 € 36,000.00
Total Extra Cost: € 168,000
Plan B
Period Demand Production Hire Fire Cost
€ 30.00 € 60.00
June 1300 1300 0 0 €0
July 1000 1300 0 3 € 180.00
August 1200 1300 0 1 € 60.00
September 1400 1300 1 0 € 30.00
October 1800 1300 5 0 € 150.00
November 1800 1300 5 0 € 150.00
December 1600 1300 3 0 € 90.00
Total Extra Cost: € 660.00

Estimates of Demand Requirements

July August Septemnber October November December
1000 1200 1400 1800 1800 1600
Plan C
Period Demand ProductionInventory(End of Period) Subcontract Cost
€ 30.00 € 60.00
June 1300 1300 0 0 €0
July 1000 1300 300 0 € 9,000.00
August 1200 1300 400 0 € 12,000.00
September 1400 1300 300 0 € 9,000.00
October 1800 1300 0 200 € 12,000.00
November 1800 1300 0 500 € 30,000.00
December 1600 1300 0 300 € 18,000.00
Total Extra Cost: € 90,000.00

Plan D
Period Demand ProductionActual Production Inventory Idle Time Overtime Subcontrac
€ 25.00 € 60.00 € 40.00 € 60.00
June 1300 1300 1300 0 0 0 0
July 1000 1300 1300 300 180 60 60
August 1200 1300 1300 400 180 80 140
September 1400 1300 1300 300 180 60 60
October 1800 1300 1300 -200 0 40 160
November 1800 1300 1300 -500 0 100 400
December 1600 1300 1300 -300 0 60 240
Total Cost:
Cost

€0
€ 24,300.00
€ 32,400.00
€ 24,300.00
€ 11,200.00
€ 28,000.00
€ 16,800.00
€ 137,000