Business Finance Homework Help

Capacity Planning Problem Statement

A company has 2 Factories and 4 Warehouses that are used to meet the demands of 3 product types
purchased by 5 Customers. There are two ways products can flow, each with different costs:

Factory→Warehouse→Customer or Factory→Customer

Using Solver, come up with optimum solution that: minimizes the costs of shipping goods from factories
to customers and factories to warehouses to customers, while not exceeding the supply available from
each factory or the capacity of each warehouse, and meeting the demand from each customer. This
assignment has an Excel template that includes the following:

1. Cost of shipping ($ per product) for each Factory → Warehouse, Factory → Customer and
   Warehouse→Customer combination.
2. Capacity of products that can be shipped from each warehouse.
3. Demand by product by customer.
4. Capacity by product for each Factory.