Transportation cost optimization

Abstract

Many manufacturing make their products in few locations and ship them to many 
different shops. In this paper work we use Evolver, IP - Solver and Microsoft Solver 
Foundation in order to optimize transportation cost of the window and door 
factory or to find the cheaper way to make and ship products to the customers and 
meet customer demand. Window and Door Company named “Proplast” is located 
in three different places in Ferizaj, Pristina and Prizren and will supply 9 shops in 
Kosovë, Albania, Macedonia Montenegro and Serbia. Mathematically speaking, our 
goal is to find minimal transportation cost and this problem will be set up as a 
linear programming model with the below definition: 
• Minimize total production and transportation cost 
• Constraints✓ The amount shipped from each factory cannot exceed plant 
capacity 
✓ Every shop must receive its required demand 
✓ Transportation trucks have the limit of loading quantity and 
✓ Each shipping amount must be nonnegative 
We will show Evolver, IP - Solver and Microsoft Solver Foundation results and will 
find the least expensive way. Also we will compare min and max cost for all 
software.