What are the implications for this business if the total costs to all destinations increase?

With the rapid expansion of global business transactions, the use of supply chain and transportation models to solve for least cost for logistics and transport is a common activity in all organizations today. The transportation problem is a simple linear programming model that is easily solved with Excel.

In this assignment, you will use the Excel data analysis tool known as Solver. Read the example in Chapter 6 on The Foster Generator Transportation Problem. The excel setup for this problem can be located on page 312 in your text; however, there is no need to set up your own Excel file. I have embedded an Excel sheetPreview the document in this assignment with all formulas included. You need only to plug in the different values shown below to solve the problem.

Given the following: Assume that the cost per unit to ship is $9.00 for Origin of Cleveland to all four destinations of Boston, Chicago, St. Louis and Lexington.

What is the minimal transportation cost if all other variables remain equal?

What is the minimal cost of transportation if the cost per unit to ship is $7.00 for all origins to all destinations?

What are the implications for this business if the total costs to all destinations increase? If the total costs decrease?

Provide a brief narrative on your transportation problem. Describe the importance of the use of Solver and this Excel file for business and industry. Insert this narrative as a text box in the Excel file.