m supply pts Cij =

n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant No

5 YR Forecast

Units Toronto KC (denver) LA

Toronto 1000 0 0
KC (denver) 0 750 0
LA 0 0 1500
Seattle 0 0 0
Chicago 1500 0 0
Atlanta 0 750 0
Guadalajara 0 0 2000
<= <= <=
Capacity 2500 1500 3500
2500 1500 3500

Obj Function
Min Cost 164562.5
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Demand Demand

Seattle Guadalajara 5 Yr 10 Yr 5 Yr 10 Yr
0 1 <= 1000 1000 1000 1000
0 1 <= 750 750 750 1000
1000 1 <= 2500 2500 2500 3000
1500 1 <= 1500 1500 1500 2000
0 1 <= 1500 1500 1500 2000
0 1 <= 750 750 750 1000
0 1 <= 2000 2000 2000 3000
<= <= 10000 13000
2500 7
2500 4000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant No

10 YR Forecast

Units Toronto KC (denver) LA

Toronto 0 0 0
KC (denver) 0 0 0
LA 0 0 2500
Seattle 0 1000 1000
Chicago 1500 500 0
Atlanta 1000 0 0
Guadalajara 0 0 0
<= <= <=
Capacity 2500 1500 3500
2500 1500 3500

Obj Function
Min Cost 172375
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Demand Demand

Seattle Guadalajara 5 Yr 10 Yr 5 Yr 10 Yr
1000 1 <= 1000 1000 1000 1000
1000 1 <= 1000 1000 750 1000
500 1 <= 3000 3000 2500 3000
0 1 <= 2000 2000 1500 2000
0 1 <= 2000 2000 1500 2000
0 1 <= 1000 1000 750 1000
0 1 <= 0 0 2000 3000
<= <= 10000 13000
2500 7
2500 4000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant Yes

5 YR Forecast

Units Toronto KC (denver) LA

Toronto 1000 0 0
KC (denver) 0 0 0
LA 0 0 2500
Seattle 0 0 0
Chicago 1500 0 0
Atlanta 0 0 0
Guadalajara 0 0 1000
<= <= <=
Capacity 2500 0 3500
2500 1500 3500

Obj Function
Min Cost 86500
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Demand Demand

Seattle Guadalajara 5 Yr 10 Yr 5 Yr 10 Yr
0 0 >= 1000 1000 1000 1000
0 750 >= 750 750 750 1000
0 0 >= 2500 2500 2500 3000
0 1500 >= 1500 1500 1500 2000
0 0 >= 1500 1500 1500 2000
0 750 >= 750 750 750 1000
0 1000 >= 2000 2000 2000 3000
<= <= 10000 13000
0 4000
2500 4000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant Yes

10 YR Forecast

Units Toronto KC (denver) LA

Toronto 1000 0 0
KC (denver) 0 500 0
LA 0 0 3000
Seattle 0 0 0
Chicago 1500 0 0
Atlanta 0 0 0
Guadalajara 0 0 500
<= <= <=
Capacity 2500 500 3500
2500 1500 3500

Obj Function
Min Cost 141125
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Demand Demand

Seattle Guadalajara 5 Yr 10 Yr 5 Yr 10 Yr
0 0 >= 1000 1000 1000 1000
0 500 >= 1000 1000 750 1000
0 0 >= 3000 3000 2500 3000
2000 0 >= 2000 2000 1500 2000
500 0 >= 2000 2000 1500 2000
0 1000 >= 1000 1000 750 1000
0 2500 >= 3000 3000 2000 3000
<= <= 10000 13000
2500 4000
2500 4000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Units Toronto KC (denver) LA

Toronto 800 0 0
KC (denver) 0 0 0
LA 0 0 1900
Seattle 0 0 0
Chicago 1200 0 0
Atlanta 500 0 0
Guadalajara 0 0 1600
<= <= <=
Capacity 2500 0 3500
2500 1500 3500

Obj Function
Min Cost 125275
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Seattle Guadalajara 1 yr 1 Yr 10 Yr
0 1 <= 800 800 1000
600 1 <= 600 600 1000
100 1 <= 2000 2000 3000
1200 1 <= 1200 1200 2000
0 1 <= 1200 1200 2000
100 1 <= 600 600 1000
0 1 <= 1600 1600 3000
<= <=
2000 7
2500 4000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant No

5 YR Forecast

Units Toronto KC (denver) LA

Toronto 850 0 0
KC (denver) 0 0 0
LA 0 0 1800
Seattle 0 0 0
Chicago 1275 0 0
Atlanta 375 0 0
Guadalajara 0 0 1700
<= <= <=
Capacity 2500 0 3500
2500 1500 3500

Obj Function
Min Cost 134909.375
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Seattle Guadalajara 2 Yr 2 Yr
0 1 <= 850 850
637.5 1 <= 637.5 637.5
325 1 <= 2125 2125
1275 1 <= 1275 1275
0 1 <= 1275 1275
262.5 1 <= 637.5 637.5
0 1 <= 1700 1700
<= <=
2500 7
2500 4000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant No

5 YR Forecast

Units Toronto KC (denver) LA

Toronto 900 0 0
KC (denver) 0 500 0
LA 0 0 1700
Seattle 0 0 0
Chicago 1350 0 0
Atlanta 250 0 0
Guadalajara 0 0 1800
<= <= <=
Capacity 2500 500 3500
2500 1500 3500

Obj Function
Min Cost 144668.75
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Demand Demand

Seattle Guadalajara 3 Yr 10 Yr 3 Yr 10 Yr
0 1 <= 900 900 900 1000
175 1 <= 675 675 675 1000
550 1 <= 2250 2250 2250 3000
1350 1 <= 1350 1350 1350 2000
0 1 <= 1350 1350 1350 2000
425 1 <= 675 675 675 1000
0 1 <= 1800 1800 1800 3000
<= <= 9000 13000
2500 7
2500 4000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant No

5 YR Forecast

Units Toronto KC (denver) LA

Toronto 950 0 0
KC (denver) 0 712.5 0
LA 0 0 1600
Seattle 0 0 0
Chicago 1425 0 0
Atlanta 125 287.5 0
Guadalajara 0 0 1900
<= <= <=
Capacity 2500 1000 3500
2500 1500 3500

Obj Function
Min Cost 154571.875
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Demand Demand

Seattle Guadalajara 4 Yr 10 Yr 4 Yr 10 Yr
0 1 <= 950 950 950 1000
0 1 <= 712.5 712.5 712.5 1000
775 1 <= 2375 2375 2375 3000
1425 1 <= 1425 1425 1425 2000
0 1 <= 1425 1425 1425 2000
300 1 <= 712.5 712.5 712.5 1000
0 1 <= 1900 1900 1900 3000
<= <= 9500 13000
2500 7
2500 4000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant No

5 YR Forecast

Units Toronto KC (denver) LA

Toronto 1060 0 0
KC (denver) 0 0 0
LA 0 0 2650
Seattle 0 0 0
Chicago 1440 0 0
Atlanta 0 0 0
Guadalajara 0 0 850
<= <= <=
Capacity 2500 0 3500
2500 1500 3500

Obj Function
Min Cost 96917.5
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Demand Demand

Seattle Guadalajara 6 Yr 6 Yr 10 Yr
0 0 <= 1060 1060 1000
0 795 <= 795 795 1000
0 0 <= 2650 2650 3000
600 990 <= 1590 1590 2000
0 150 <= 1590 1590 2000
0 795 <= 795 795 1000
0 1270 <= 2120 2120 3000
<= <= 10600
600 4000
2500 4000
13000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant No

5 YR Forecast

Units Toronto KC (denver) LA

Toronto 1120 0 0
KC (denver) 0 0 0
LA 0 0 2800
Seattle 0 0 0
Chicago 1380 0 0
Atlanta 0 0 0
Guadalajara 0 0 700
<= <= <=
Capacity 2500 0 3500
2500 1500 3500

Obj Function
Min Cost 107335
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Demand Demand

Seattle Guadalajara 7 Yr 7 Yr 10 Yr
0 0 <= 1120 1120 1000
0 840 <= 840 840 1000
0 0 <= 2800 2800 3000
1200 480 <= 1680 1680 2000
0 300 <= 1680 1680 2000
0 840 <= 840 840 1000
0 1540 <= 2240 2240 3000
<= <=
1200 4000
2500 4000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant No

5 YR Forecast

Units Toronto KC (denver) LA

Toronto 1180 0 0
KC (denver) 0 0 0
LA 0 0 2950
Seattle 0 0 0
Chicago 1320 0 0
Atlanta 0 0 0
Guadalajara 0 0 550
<= <= <=
Capacity 2500 0 3500
2500 1500 3500

Obj Function
Min Cost 117805
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Demand Demand

Seattle Guadalajara 8 Yr 10 Yr 8 Yr 10 Yr
0 0 <= 1180 1180 1180 1000
0 885 <= 885 0 885 1000
0 0 <= 2950 2950 2950 3000
1770 0 <= 1770 1770 1770 2000
30 420 <= 1770 1350 1770 2000
0 885 <= 885 0 885 1000
0 1810 <= 2360 550 2360 3000
<= <= 11800 13000
1800 4000
2500 4000
 m supply pts Cij =
n demand pts no of variables=

Transportation Cost Matrix

Production Centers
Toronto KC (denver) LA
Toronto 0.75 2.5 4.5
KC (denver) 2.5 1 2.5
LA 4.5 2.5 0.5
Distribution Centers Seattle 4.75 2.75 2.25
Chicago 1.5 1.5 3.75
Atlanta 3 2.25 3
Guadalajara 5.25 3.25 1.75
Capacity 2500 1500 3500

Production Centers
Transportation + Production Cost Matrix
Toronto KC (denver) LA
Toronto 14.75 21.5 17.5
KC (denver) 16.5 20 15.5
LA 18.5 21.5 13.5
Distribution Centers Seattle 18.75 21.75 15.25
Chicago 15.5 20.5 16.75
Atlanta 17 21.25 16
Guadalajara 19.25 22.25 14.75

Scenerio 1 Guadalajara Plant No

5 YR Forecast

Units Toronto KC (denver) LA

Toronto 1240 0 0
KC (denver) 0 0 0
LA 0 0 3100
Seattle 0 0 0
Chicago 1260 0 0
Atlanta 0 0 0
Guadalajara 0 0 400
<= <= <=
Capacity 2500 0 3500
2500 1500 3500

Obj Function
Min Cost 129115
 cost of transporting 1 unit from supply pt i to demand pt j
m*n

ortation Cost Matrix

ters Demand Production costs/carton
Seattle Guadalajara 5 Yr 10 Yr Toronto 14
4.75 5.25 1000 1000 denver 19
2.75 3.25 750 1000 LA 13
2.25 1.75 2500 3000 Seatttle 17
0.75 2.5 1500 2000 Guadalajara 10
2.5 3.75 1500 2000
3.5 3.5 750 1000
3.75 0.5 2000 3000
2500 4000

ters
tion Cost Matrix
Seattle Guadalajara
21.75 15.25
19.75 13.25
19.25 11.75
17.75 12.5
19.5 13.75
20.5 13.5
20.75 10.5

Demand Demand

Seattle Guadalajara 9 Yr 10 Yr 9 Yr 10 Yr
0 0 <= 1240 1240 1240 1000
0 930 <= 930 0 930 1000
0 0 <= 3100 3100 3100 3000
1860 0 <= 1860 1860 1860 2000
540 60 <= 1860 1800 1860 2000
0 930 <= 930 0 930 1000
0 2080 <= 2480 400 2480 3000
<= <= 12400 13000
2400 4000
2500 4000
 NPV

Year 0 1 2 3
Capital Expenditure $ -30,000,000.00
Revenue $ 160,000.00 $ 170,000.00 $ 180,000.00
Cost $ 125,275.00 $ 134,909.38 $ 144,668.75
margin $ 34,725.00 $ 35,090.63 $ 35,331.25
yearly margin $ 10,417,500.00 $ 10,527,187.50 $ 10,599,375.00
depreciation $ 3,000,000.00 $ 3,000,000.00 $ 3,000,000.00
pbt $ 7,417,500.00 $ 7,527,187.50 $ 7,599,375.00
nopat $ 2,967,000.00 $ 3,010,875.00 $ 3,039,750.00
add depreciation $ 5,967,000.00 $ 6,010,875.00 $ 6,039,750.00
discounted cash flow $ 5,424,545.45 $ 4,967,665.29 $ 4,537,753.57
npv $ 5,493,143.80
 4 5 6 7 8

$ 190,000.00 $ 200,000.00 $ 212,000.00 $ 224,000.00 $ 236,000.00

$ 154,571.88 $ 164,562.50 $ 96,917.50 $ 107,335.00 $ 117,805.00
$ 35,428.13 $ 35,437.50 $ 115,082.50 $ 116,665.00 $ 118,195.00
$ 10,628,437.50 $ 10,631,250.00 $ 34,524,750.00 $ 34,999,500.00 $ 35,458,500.00
$ 3,000,000.00 $ 3,000,000.00 $ 3,000,000.00 $ 3,000,000.00 $ 3,000,000.00
$ 7,628,437.50 $ 7,631,250.00 $ 31,524,750.00 $ 31,999,500.00 $ 32,458,500.00
$ 3,051,375.00 $ 3,052,500.00 $ 12,609,900.00 $ 12,799,800.00 $ 12,983,400.00
$ 6,051,375.00 $ 6,052,500.00 $ 15,609,900.00 $ 15,799,800.00 $ 15,983,400.00
$ 4,133,170.55 $ 3,758,126.31 $ 8,811,381.60 $ 8,107,795.64 $ 7,456,374.06
 Years 1
9 10 Total Demand 8000
Selling Price 20
$ 248,000.00 $ 260,000.00
$ 129,115.00 $ 141,125.00
$ 118,885.00 $ 118,875.00 Toronto
$ 35,665,500.00 $ 35,662,500.00 Toronto 0.75
$ 3,000,000.00 $ 3,000,000.00 KC (denver) 2.5
$ 32,665,500.00 $ 32,662,500.00 LA 4.5
$ 13,066,200.00 $ 13,065,000.00 Seattle 4.75
$ 16,066,200.00 $ 16,065,000.00 Chicago 1.5
$ 6,813,637.16 $ 6,193,752.94 Atlanta 3
Guadalajara 5.25
 2 3 4 5 6 7 8 9
8500 9000 9500 10000 10600 11200 11800 12400

KC (denver) LA Seattle Guadalajara Weights 1 Yr 2 year 3 year

2.5 4.5 4.75 5.25 0.1 800 850 900
1 2.5 2.75 3.25 0.075 600 637.5 675
2.5 0.5 2.25 1.75 0.25 2000 2125 2250
2.75 2.25 0.75 2.5 0.15 1200 1275 1350
1.5 3.75 2.5 3.75 0.15 1200 1275 1350
2.25 3 3.5 3.5 0.075 600 637.5 675
3.25 1.75 3.75 0.5 0.2 1600 1700 1800
10000
 10
13000

4 year 5 Yr 6 year 7 year 8 year 9 year 10 year

950 1000 1060 1120 1180 1240 1000
712.5 750 795 840 885 930 1000
2375 2500 2650 2800 2950 3100 3000
1425 1500 1590 1680 1770 1860 2000
1425 1500 1590 1680 1770 1860 2000
712.5 750 795 840 885 930 1000
1900 2000 2120 2240 2360 2480 3000