Instructions- Submit ONE Excel
file with two Sheet 1 labeled
1.sheet 1 NETWORK-
Ø Please format the model so that PORT of origin is set
as a Row and DESTINATION cities are Columns.
Formulate your model using Solver to minimize costs while satisfying all
conditions. The model should be neat, and it should be clear what your decision
variables and constraints are (i.e. be sure to label!)
Ø Please ensure
that the Solver solution is saved in your spreadsheet submission. If we open the solver box and there is
nothing there, you will receive a 0.
Ø Assume that the railroads all charge $2.75 per mile
traveled per each passenger car carried.
Ø It is common practice in the auto industry to add on a
fixed, average Delivery cost onto the sticker price, which is not
negotiable. The use of an average
implies that the lower cost destinations in the East will subsidize the more
costly deliveries further away from the ports of entry. If Hyundai dealers are instructed to use $980
as the sticker Delivery cost, what is the total surplus (or deficit?) for the
month profiled? Assume that the ocean
freight is included in the base price and not part of this analysis. The format should be carefully labeled and
show all calculations to support your answer, which should be a highlighted
points for spreadsheet NETWORK –
including set-up, Solver completeness, solution accuracy
points for spreadsheet DELIVERY COSTS-
including completeness, accuracy of calculations
and clarity will be included in the point evaluation above
15 points total
(Instructor Comment: This case is designed as a network application;
the only accurate information is the city-to-city distances (though not
necessarily based on actual rail routing miles). Do NOT go to your local Hyundai dealer nor to
the Korean HQ in order to get insights on their distribution.)
constraints i think 5 total but this is what i have so far –
Non negativity
80 percent 12 destination
Cannot exceed supply
Max amount to ship
Constraint for each destination for normal demand given
Split them up to individual places
12 constraints for 80 percent
Another 12 for normal demand
Also non negativity

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