Decision Analysis Task 2
interoffice memorandum to: shanghai management team from: cassandra r gatlin subject: task 2 date: A.
Upon reviewing your transportation issues, currently, the optimal transportations cost are $13,600 (as seen below). I recommend using the transportation modeling to find the distribution pattern that will meet the availability and the demand with the least amount of shipping costs. Using transportation model we find that the best and optimal warehouse solution based on the information (current conditions), Shanghai would ship 1300 units to warehouse 2. Shuzworld H would ship 300 units to Warehouse 1, 200 to Warehouse 2 and 1800 units to Warehouse 3. Finally, Shuzworld F would ship 2200 units to Warehouse 1. Using the transportation model to implement this shipping plan would reduce the cost associated with shipping from Shuzworld F to Warehouse 3 which is the most expensive route.
Using the transportation model and increasing the production from 1300 units to 2800 units, the optimal transportation costs changes to $13,400.
The increase in supply shows that the best and optimal distribution pattern is Shanghai would ship 1500 units to warehouse 2. Shuzworld H would ship 300 units to Warehouse 1, and 1800 units to Warehouse 3. Finally, Shuzworld F would ship 2200 units to Warehouse 1. The additional units 1500 are shipped to a dummy warehouse, 1300 units are allocated to Shanghai and 200 units are allocated to Shuzworld H. Again, using the transportation model to implement this shipping plan would reduce the cost associated with shipping from Shuzworld F to Warehouse 3 which is the most expensive route. Additionally, increasing the supply units and storing them in a dummy warehouse decreases the transportation costs. By shipping the excess units to a dummy location does not increase the cost for the company. The transportation model finds the lowest cost by analyzing the different shipping methods.
B.
In order to improve reliability, in the event of failure, it
Upon reviewing your transportation issues, currently, the optimal transportations cost are $13,600 (as seen below). I recommend using the transportation modeling to find the distribution pattern that will meet the availability and the demand with the least amount of shipping costs. Using transportation model we find that the best and optimal warehouse solution based on the information (current conditions), Shanghai would ship 1300 units to warehouse 2. Shuzworld H would ship 300 units to Warehouse 1, 200 to Warehouse 2 and 1800 units to Warehouse 3. Finally, Shuzworld F would ship 2200 units to Warehouse 1. Using the transportation model to implement this shipping plan would reduce the cost associated with shipping from Shuzworld F to Warehouse 3 which is the most expensive route.
Using the transportation model and increasing the production from 1300 units to 2800 units, the optimal transportation costs changes to $13,400.
The increase in supply shows that the best and optimal distribution pattern is Shanghai would ship 1500 units to warehouse 2. Shuzworld H would ship 300 units to Warehouse 1, and 1800 units to Warehouse 3. Finally, Shuzworld F would ship 2200 units to Warehouse 1. The additional units 1500 are shipped to a dummy warehouse, 1300 units are allocated to Shanghai and 200 units are allocated to Shuzworld H. Again, using the transportation model to implement this shipping plan would reduce the cost associated with shipping from Shuzworld F to Warehouse 3 which is the most expensive route. Additionally, increasing the supply units and storing them in a dummy warehouse decreases the transportation costs. By shipping the excess units to a dummy location does not increase the cost for the company. The transportation model finds the lowest cost by analyzing the different shipping methods.
B.
In order to improve reliability, in the event of failure, it