Question

Rent'R Cars is a multisite car rental company in the city. It is trying out a new "return the car to the location most convenient for you" policy to improve customer service. But this means that the company has to constantly move cars around the city to maintain required levels of vehicle availability. The supply and demand for economy cars, and the total cost of moving these vehicles between sites, are shown below.

From\To		D		E		F		G		Supply
A			$7		$14		$15		$3	75
B			7		12		17		2	65
C			10		6		9		8	110
Demand			45		60		65		80	250\250

a. Find the solution that minimizes moving costs using Microsoft Excel. (Leave no cells blank - be certain to enter "0" wherever required.)

From/To	D	E	F	G	Supply
Candidate solution
A
B
C
Total shipped
Cost
A
B
C
Total costs					$

Answer 1

Problem was modelled in Excel and solutions were prepared using SOLVER (LP). Snapshots are shown below:

Formulae:

SOLVER formulae: