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ABC Corporation is a Global Distributor of electrical parts and components. The company contracts to purchase components and parts from Europe, and it has them delivered to warehouses in three European Ports, E1, E2, E3. The various components and parts are loaded into containers based on demand from U.S customers. Each port has a limited fixed number of containers available each month. The containers are then shipped overseas by container ships to the ports of P1, P2, P3, and P4. From these seaports, the containers are typically coupled with trucks and hauled to inland ports in I1, I2, and I3. There are a fixed number of freight haulers available at each port each month. These inland ports are sometimes called “freight villages” or intermodal junctions, where the containers are collected and transferred from one transport mode to another (i.e. from truck to rail to vice versa). From the inland ports, the containers are transported to ABC’s distribution centers in D1, D2, D3, D4, and D5. Following are the handling and the shipping costs ($/container) between each of the embarkation and destination points along this overseas supply chain and available containers at each port:

Sample excel sheet

A red cell signifies that the particular route is not a viable option and hence, cannot be considered. Determine the optimal shipments from each point of embarkation to each destination along this overseas supply chain that will result in minimum total shipping cost and the total shipping cost incurred at each stage.

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