Quantitative problem solving Solutions

Quantitative problem solving 1
QUANTITATIVE PROBLEM-SOLVING SITUATION
By (Name)
Course
Professor’s Name
Location of Institution
Date

Quantitative problem solving 2
Part A
Excel Problem Solver
Let A- Philadelphia
B- Atlanta
C- St. Louis
D- Salt lake City
Cost Per Unit
From/To 1 2 3
A $ 45 $ 52 $ 56
B $ 55 $ 42 $ 58
C $ 47 $ 60 $ 50
D $ 72 $ 71 $ 67
Total Demand (tons) 525 415 925
Total costs
From/To 1 2 3
A $ 45 $ 52 $ 56
B $ 55 $ 42 $ 58
C $ 47 $ 60 $ 50
D $ 72 $ 71 $ 67
Volume
From/To 1 2 3
A 525 0 0
B 0 415 0
C 0 0 925
D 0 0 0
Demand 525 415 925
Total Demand (tons) 525 415 925
Comments on the solution
The objective function of the transportation problem is minimizing the cost of
transportation, which in turn reduces the total cost of production. The solver model well
utilizes the maximum capacity of the company. This is because the two manufacturing
stations, St. Louis and Salt Lake City, with maximum production capacity, are all
producing their full capacity pellets. Only one production point, Atlanta, utilizes about

Quantitative problem solving 3
48% of its maximum capacity. This is as a result of high transportation costs to the high
demand areas. Apart from Atlanta, the other production sites are at maximum capacity.
Therefore, I would say the company’s production capacity is optimized.
Implications for Sycamore
The essential important thing in a supply chain is customer satisfaction.
Customer satisfaction can be achieved by meeting their demands and needs; in terms of
quality and quantity. In this quantitative problem situation, all the demands must be
made. Therefore, all the demand required by the destinations should amount to the total
demand. This ensures that there is no need that is not satisfied. Supply cannot be less than
the demand either, as this would mean there is a deficit in the inventory. The supply
constraint of the objective functions should be greater than or equal to satisfy the need.
Each supply that is in excess from one row can be distributed to other destinations
according to their values of demand.
The solver model for the quantitative problem situation solves the problem of
demand as it ensures that all the demands are filled. However, the supply is more than the
need. Therefore, some of the goods produced will not be bought by consumers leading to
waste. An oversupply in the inventory is a huge disadvantage as it means that money
used in holding the commodity in transit and storage is not recovered. Furthermore, the
monetary value used in the purchase of raw materials for the surplus commodity does not
get back to the producer. This indicates a loss in terms of income in the supply chain,
which is not part of the sole objectives.