Problem 3a

Inputs-Transportation Costs, Production Costs, Capacities and Demands

Demand Region
Transportation Costs

Production Production
North South Capacity Exchange
Europe Japan Asia Costs/Ton (in Costs/Ton (local
America America Tons/Year rate
dollars) currency)
Supply Region
United States 600 1200 1300 2000 1700 185 10000 10000 1
Germany 1300 1400 600 1400 1300 475 7530 15000 0.502
Japan 2000 2100 1400 300 900 50 16740 1800000 0.0093
Brazil 1200 800 1400 2100 2100 200 7306 13000 0.562
India 2200 2300 1300 1000 800 80 9200 400000 0.023
Demand
(tons/year) 270 190 200 120 100

Decision Variable

Demand Region
Production Allocation (tons)
Total
North South
America America Europe Japan Asia Ammount
Supply Region Supplied
United States 100 0 0 0 0 100
Germany 160 0 200 95 20 475
Japan 0 0 0 25 0 25
Brazil 10 190 0 0 0 200
India 0 0 0 0 80 80

Constraints

Supply Region Excess Capacity Minimum Capacity

United States 85 92.5
Germany 0 237.5
Japan 25 25
Brazil 0 100
India 0 40
North South Europe Japan Asia
America America
Unmet Demand 0 0 0 0 0

Objective Function

Cost = $ 7,974,950.00
 Problem 3b

Inputs-Transportation Costs, Production Costs, Capacities and Demands

Demand Region
Transportation Costs
Production
Production
North South Costs/Ton
Europe Japan Asia Costs/Ton (in Exchange rate
America America (local
dollars)
currency)
Supply Region
United States 600 1200 1300 2000 1700 10000 10000 1
Germany 1300 1400 600 1400 1300 7530 15000 0.502
Japan 2000 2100 1400 300 900 16740 1800000 0.0093
Brazil 1200 800 1400 2100 2100 7306 13000 0.562
India 2200 2300 1300 1000 800 9200 400000 0.023

Demand
(tons/year) 270 190 200 120 100

Decision Variable

Demand Region
Production Allocation (tons)
Total
North South Europe Japan Asia Ammount
America America
Supply Region Supplied
United States 0 0 0 0 0 0
Germany 0 0 200 120 100 420
Japan 0 0 0 0 0 0
Brazil 270 190 0 0 0 460
India 0 0 0 0 0 0

Constraints

North South
Europe Japan Asia
America America
Unmet Demand 0 0 0 0 0

Objective Function

Cost = $ 7,417,360.00
 Problem 3c

Results after increasing capacity in US plant

Inputs-Transportation Costs, Production Costs, Capacities and Demands

Demand Region
Transportation Costs
Production
Production
North South Capacity Costs/Ton Exchange
Europe Japan Asia Costs/Ton
America America Tons/Year (local rate
(in dollars)
currency)
Supply Region
United States 600 1200 1300 2000 1700 195 10000 10000 1
Germany 1300 1400 600 1400 1300 475 7530 15000 0.502
Japan 2000 2100 1400 300 900 50 16740 1800000 0.0093
Brazil 1200 800 1400 2100 2100 200 7306 13000 0.562
India 2200 2300 1300 1000 800 80 9200 400000 0.023
Demand
(tons/year) 270 190 200 120 100

Decision Variable

Demand Region
Production Allocation (tons)
Total
North South
Europe Japan Asia Ammount
America America
Supply Region Supplied
United States 100 0 0 0 0 100
Germany 160 0 200 95 20 475
Japan 0 0 0 25 0 25
Brazil 10 190 0 0 0 200
India 0 0 0 0 80 80

Constraints

Supply Region Excess Capacity Minimum Capacity

United States 95 97.5
Germany 0 237.5
Japan 25 25
Brazil 0 100
India 0 40
North South
Europe Japan Asia
America America
Unmet Demand 0 0 0 0 0

Objective Function
 Problem 3c

Cost = $ 7,974,950.00

Results after increasing capacity in Germany

Inputs-Transportation Costs, Production Costs, Capacities and Demands

Demand Region
Transportation Costs
Production
Production
North South Capacity Costs/Ton Exchange
Europe Japan Asia Costs/Ton
America America Tons/Year (local rate
(in dollars)
currency)
Supply Region
United States 600 1200 1300 2000 1700 185 10000 10000 1
Germany 1300 1400 600 1400 1300 485 7530 15000 0.502
Japan 2000 2100 1400 300 900 50 16740 1800000 0.0093
Brazil 1200 800 1400 2100 2100 200 7306 13000 0.562
India 2200 2300 1300 1000 800 80 9200 400000 0.023
Demand
(tons/year) 270 190 200 120 100

Decision Variable

Demand Region
Production Allocation (tons)
Total
North South
Europe Japan Asia Ammount
America America
Supply Region Supplied
United States 92.5 0 0 0 0 92.5
Germany 167.5 0 200 95 22.5 485
Japan 0 0 0 25 0 25
Brazil 10 190 0 0 0 200
India 0 0 0 0 77.5 77.5

Constraints

Supply Region Excess Capacity Minimum Capacity

United States 92.5 92.5
Germany 0 242.5
Japan 25 25
Brazil 0 100
India 2.5 40
North South Europe Japan Asia
America America
Unmet Demand 0 0 0 0 0

Objective Function
 Problem 3c

Cost = $ 7,958,750.00

Results after increasing capacity in Japan

Inputs-Transportation Costs, Production Costs, Capacities and Demands

Demand Region
Transportation Costs
Production
Production
North South Capacity Costs/Ton Exchange
Europe Japan Asia Costs/Ton
America America Tons/Year (local rate
(in dollars)
currency)
Supply Region
United States 600 1200 1300 2000 1700 185 10000 10000 1
Germany 1300 1400 600 1400 1300 475 7530 15000 0.502
Japan 2000 2100 1400 300 900 60 16740 1800000 0.0093
Brazil 1200 800 1400 2100 2100 200 7306 13000 0.562
India 2200 2300 1300 1000 800 80 9200 400000 0.023
Demand
(tons/year) 270 190 200 120 100

Decision Variable

Demand Region
Production Allocation (tons)
Total
North South
Europe Japan Asia Ammount
America America
Supply Region Supplied
United States 95 0 0 0 0 95
Germany 165 0 200 90 20 475
Japan 0 0 0 30 0 30
Brazil 10 190 0 0 0 200
India 0 0 0 0 80 80

Constraints

Supply Region Excess Capacity Minimum Capacity

United States 90 92.5
Germany 0 237.5
Japan 30 30
Brazil 0 100
India 0 40
North South
Europe Japan Asia
America America
Unmet Demand 0 0 0 0 0
 Problem 3c

Objective Function

Cost = $ 8,006,650.00

Results after increasing capacity in Brazil

Inputs-Transportation Costs, Production Costs, Capacities and Demands

Demand Region
Transportation Costs
Production
Production
North South Capacity Costs/Ton Exchange
Europe Japan Asia Costs/Ton
America America Tons/Year (local rate
(in dollars)
currency)
Supply Region
United States 600 1200 1300 2000 1700 185 10000 10000 1
Germany 1300 1400 600 1400 1300 475 7530 15000 0.502
Japan 2000 2100 1400 300 900 50 16740 1800000 0.0093
Brazil 1200 800 1400 2100 2100 210 7306 13000 0.562
India 2200 2300 1300 1000 800 80 9200 400000 0.023
Demand
(tons/year) 270 190 200 120 100

Decision Variable

Demand Region
Production Allocation (tons)
Total
North South Europe Japan Asia Ammount
America America
Supply Region Supplied
United States 92.5 0 0 0 0 92.5
Germany 157.5 0 200 95 22.5 475
Japan 0 0 0 25 0 25
Brazil 20 190 0 0 0 210
India 0 0 0 0 77.5 77.5

Constraints

Supply Region Excess Capacity Minimum Capacity

United States 92.5 92.5
Germany 0 237.5
Japan 25 25
Brazil 0 105
India 2.5 40
North South Europe Japan Asia
America America
 Problem 3c

Unmet Demand 0 0 0 0 0

Objective Function

Cost = $ 7,955,510.00

Results after increasing capacity in India

Inputs-Transportation Costs, Production Costs, Capacities and Demands

Demand Region
Transportation Costs
Production
Production
North South Capacity Costs/Ton Exchange
Europe Japan Asia Costs/Ton
America America Tons/Year (local rate
(in dollars)
currency)
Supply Region
United States 600 1200 1300 2000 1700 185 10000 10000 1
Germany 1300 1400 600 1400 1300 475 7530 15000 0.502
Japan 2000 2100 1400 300 900 50 16740 1800000 0.0093
Brazil 1200 800 1400 2100 2100 200 7306 13000 0.562
India 2200 2300 1300 1000 800 90 9200 400000 0.023
Demand
(tons/year) 270 190 200 120 100

Decision Variable

Demand Region
Production Allocation (tons)
Total
North South
Europe Japan Asia Ammount
America America
Supply Region Supplied
United States 92.5 0 0 0 0 92.5
Germany 167.5 0 200 95 12.5 475
Japan 0 0 0 25 0 25
Brazil 10 190 0 0 0 200
India 0 0 0 0 87.5 87.5

Constraints

Supply Region Excess Capacity Minimum Capacity

United States 92.5 92.5
Germany 0 237.5
Japan 25 25
Brazil 0 100
 Problem 3c

India 2.5 45
North South
Europe Japan Asia
America America
Unmet Demand 0 0 0 0 0

Objective Function

Cost = $ 7,970,450.00