Management of the Executive Furniture Corporation
The management of the Executive Furniture Corporation decided to expand the production capacity at its Des Moines factory and to cut back production at its other factories. It also recognizes a shifting market for its desks and revises the requirements at its three warehouses: Albuquerque, Boston, and Cleveland.
The table below provides the requirements at each of the warehouses, the capacities at each of the factories, and the shipping cost per unit to ship from each factory to each warehouse.
From\To Albuqueque Boston Cleveland Capacity
Des Moines 5 4 3 300
Evansville 8 4 3 150
Fort Lauderdale 9 7 5 250
Requirements 200 200 300
Find the least cost way to meet the requirements given the capacity at each factory. To do so, define decision variables, objective function, and constraints. Implement the optimization model in MS-Excel and solve it.