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Managing Growth at Sport Stuff

This document presents projected demand and costs for electricity across different regions of the United States from 1999-2002. It includes a cost matrix for distributing electricity from various warehouses to each region. The optimal distribution plan is shown to minimize total costs, including warehouse costs, inventory holding costs, and transportation costs, totaling over $10 million.

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Sean Wright
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2K views

Managing Growth at Sport Stuff

This document presents projected demand and costs for electricity across different regions of the United States from 1999-2002. It includes a cost matrix for distributing electricity from various warehouses to each region. The optimal distribution plan is shown to minimize total costs, including warehouse costs, inventory holding costs, and transportation costs, totaling over $10 million.

Uploaded by

Sean Wright
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
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Projected Demand

Max Demand in Each zone 1999 2000 2001 2002


Northwest 320,000.00 576,000.00 1,036,800.00 1,866,240.00
Southwest 200,000.00 360,000.00 648,000.00 1,166,400.00
Upper Midwest 160,000.00 288,000.00 518,400.00 933,120.00
Lower Midwest 220,000.00 396,000.00 712,800.00 1,283,040.00
Northeast 350,000.00 630,000.00 1,134,000.00 2,041,200.00
Southeast 175,000.00 315,000.00 567,000.00 1,020,600.00
1,425,000 2565000 4617000 8,310,600.00

Associated Cost Matrix


Northwest Southwest Upper MidwestLower Midwest Northeast
Seattle 2 2.5 3.5 4 5
Denver 2.5 2.5 2.5 3 4
St. Louise 3.5 3.5 2.5 2.5 3
Atlanta 4 4 3 2.5 3
Philadelphia 4.5 5 3 3.5 2.5

Decision Variable
Northwest Southwest Upper MidwestLower Midwest Northeast
Seattle 1,211,164 788,835 - - 0
Denver 655,076 377,565 628,225 - 0
St. Louise - - 304,895 666,912 898,002
Atlanta - - - 616,128 487,161
Philadelphia - - - - 656,037
Total 1,866,240 1166400 933120 1283040 2041200

Objective Function Location/Type Output


Warehouse Cost Small WarehoLarge Warehouse
Fixed Seattle 1 0 300000
Denver 1 0 250000
St. Louise 1 0 220000
Atlanta 0 1 375000
Philadelphia 1 0 240000
Variable Cost
Seattle 399999.8
Denver 332173.2
St. Louise 373961.8
Atlanta 424777.8
Philadelphia 131207.4
Total Warehouse Cost 3047120

Inventory Holding Cost


Fixed 475000
Variable 1371249
Total Inventory Holding Cost 1846249

Transportation Cost 20863499.5 5215874.875

Total Cost 10,109,244


Southeast
5.5
4.5
3.5
2.5
4

Southeast Total Cost of Warehouse Operations


- 1999999 Small Large
- 1660866 Fix Var Fix Var
- 1869809 Seattle 300000 0.2 500000 0.2
1,020,600 2123889 Denver 250000 0.2 420000 0.2
- 656037 St. Louise 220000 0.2 375000 0.2
1020600 8310600 Atlanta 220000 0.2 375000 0.2
Philadelph 240000 0.2 400000 0.2

2000000 4000000

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