Construct and solve a linear optimization model that defines the supply chain strategy that meets the demand of each retail outlet at minimum total shipping cost.

Orion Fitness produces bracelets with an embedded chip that tracks its wearer’s activities. Orion has

plants in Denver and Jacksonville. Bracelets produced at either plant may be shipped to either of the firm’s two regional warehouses, which are located in Davenport and Cincinnati. These regional warehouses subsequently supply retail outlets in Chicago, Orlando, Houston, and Little Rock. The file Orion contains data on each plant’s supply (number of bracelets), each retail outlet’s demand (number of bracelets), and the shipping costs ($ per bracelet) for the shipping channels.

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a. Construct and solve a linear optimization model that defines the supply chain strategy that meets the demand of each retail outlet at minimum total shipping cost.

b. In a separate worksheet, reformulate the problem to determine if there is an alternative optimal solution. Clearly explain your result.

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