CASE International Textile Company, Ltd.

Lawrence L. Lapin, San Jose State University

1. a. The following spreadsheet solution is obtained for the cotton production.

PROBLEM: International Textile

(cotton)
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Capacity
Baha 2 2 3 3 7 4 7 1 0 1000
Hong 6 7 8 10 2 9 4 8 0 2000
Kor 5 6 8 11 4 9 1 7 0 1000
Nig 14 12 6 9 11 7 5 10 0 2000
Ven 4 3 5 1 9 6 11 4 0 1000
Demand 500 800 900 900 800 100 200 700 2100 Cost
Solution $15,400.00
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Total
Baha 0 300 0 0 0 0 0 700 0 1000
Hong 0 100 0 0 800 0 0 0 1100 2000
Kor 500 300 0 0 0 0 200 0 0 1000
Nig 0 0 900 0 0 100 0 0 1000 2000
Ven 0 100 0 900 0 0 0 0 0 1000
Total 500 800 900 900 800 100 200 700 2100

Note: Two mills will operate below capacity: Hong Kong by 1,100 units and Nigeria by 1,000 units. There
are multiple optimal solutions tying the one shown.

b. The following spreadsheet solution is obtained for the polyester production.

PROBLEM: InternationalTextile Co.--

Polyester
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Capacity
Baha 2 2 3 3 7 4 7 1 3000
Hong 6 7 8 10 2 9 4 8 2500
Kor 5 6 8 11 4 9 1 7 3500
Nig 14 12 6 9 11 7 5 10 0
Ven 4 3 5 1 9 6 4 4 2000
Dum* 0 0 0 0 0 0 0 0 1000
Demand 1000 2000 3000 1500 400 700 900 2500 Cost
Solution $40,300.00
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Total
Baha 0 0 500 0 0 0 0 2500 3000
Hong 0 0 2100 0 400 0 0 0 2500
Kor 1000 1500 100 0 0 0 900 0 3500
Nig 0 0 0 0 0 0 0 0 0
Ven 0 500 0 1500 0 0 0 0 2000
Dum* 0 0 300 0 0 700 0 0 1000
Total 1000 2000 3000 1500 400 700 900 2500

Note: Two distribution centers will be shorted: London by 300 units and Rome by 700 units.
 c. The following spreadsheet solution is obtained for the silk production.

PROBLEM: International Textile

Co.--Silk
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Capacity
Baha 2 2 3 3 7 4 7 1 0
Hong 6 7 8 10 2 9 4 8 1000
Kor 5 6 8 11 4 9 1 7 500
Nig 14 12 6 9 11 7 5 10 0
Venz 4 3 5 1 9 6 11 4 0
Dum* 0 0 0 0 0 0 0 0 450
Demand 100 100 200 50 400 200 700 200 Cost
Solution $5,000.00
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Total
Baha 0 0 0 0 0 0 0 0 0
Hong 100 100 200 0 400 0 200 0 1000
Kor 0 0 0 0 0 0 500 0 500
Nig 0 0 0 0 0 0 0 0 0
Venz 0 0 0 0 0 0 0 0 0
Dum* 0 0 0 50 0 200 0 200 450
Total 100 100 200 50 400 200 700 200

Note: Three distribution centers will be shorted: Mexico City by 50 units, Rome by 200 units, and New
York by 200 units.

2. The following spreadsheet solution is obtained for silk production with the Nigeria plant activated.

PROBLEM: International Textile

Co.--Silk
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Capacity
Baha 2 2 3 3 7 4 7 1 0 0
Hong 6 7 8 10 2 9 4 8 0 1000
Kor 5 6 8 11 4 9 1 7 0 500
Nig 14 12 6 9 11 7 5 10 0 1000
Venz 4 3 5 1 9 6 11 4 0 0
Demand 100 100 200 50 400 200 700 200 550 Cost
Solution $8,050.00
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Total
Baha 0 0 0 0 0 0 0 0 0 0
Hong 100 100 0 0 400 0 200 200 0 1000
Kor 0 0 0 0 0 0 500 0 0 500
Nig 0 0 200 50 0 200 0 0 550 1000
Venz 0 0 0 0 0 0 0 0 0 0
Total 100 100 200 50 400 200 700 200 550

Note: The added cost of the new plant must be added to the shipping costs, so that the total cost becomes
$8,050 + 2,000 = $10,050. Note also that Nigeria will operate 550 units below capacity.
3. a. The following spreadsheet solution is obtained for the cotton production.

PROBLEM: International Textile

Co.--Cotton
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Capacity
Baha 2 2 3 3 7 4 7 1 0 1000
Hong 6 7 8 10 2 9 4 8 0 2000
Kor 5 6 8 11 4 9 1 7 0 1000
Nig 14 12 6 9 11 7 5 10 0 2000
Venz 4 3 5 1 9 6 11 4 0 1000
Demand 500 800 900 990 880 100 200 700 1930 Cost
Solution $16,010.00
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Total
Baha 0 300 0 0 0 0 0 700 0 1000
Hong 0 190 0 0 880 0 0 0 930 2000
Kor 500 300 0 0 0 0 200 0 0 1000
Nig 0 0 900 0 0 100 0 0 1000 2000
Venz 0 10 0 990 0 0 0 0 0 1000
Total 500 800 900 990 880 100 200 700 1930

Note: Two mills will operate below capacity: Hong Kong by 930 units and Nigeria by 1,000 units.

b. The following spreadsheet solution is obtained for the polyester production.

PROBLEM: International Textile Co.--

Polyester
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Capacity
Baha 2 2 3 3 7 4 7 1 3000
Hong 6 7 8 10 2 9 4 8 2500
Kor 5 6 8 11 4 9 1 7 3500
Nig 14 12 6 9 11 7 5 10 0
Venz 4 3 5 1 9 6 11 4 2000
Dum* 0 0 0 0 0 0 0 0 550
Demand 1000 1800 3000 1500 400 700 900 2250 Cost
Solution $41,350.00
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Total
Baha 0 0 750 0 0 0 0 2250 3000
Hong 0 0 2100 0 400 0 0 0 2500
Kor 1000 1300 150 0 0 150 900 0 3500
Nig 0 0 0 0 0 0 0 0 0
Venz 0 500 0 1500 0 0 0 0 2000
Dum* 0 0 0 0 0 550 0 0 550
Total 1000 1800 3000 1500 400 700 900 2250
Note: The Rome distribution center will be shorted by 350 units.

4. To solve this problem as a transportation problem, a new source (row) must be incorporated for each
mill to represent the respective overtime production; the applicable production cost must be added to the
unit shipping cost. A new source (row) must be included for each distribution center, reflecting the amount
to be shorted; all cost cells in these rows, except in the column of the respective destination, are given a
high shipping cost to reflect the impossibility of shipments over those routes.
 a. The following spreadsheet solution is obtained for the cotton production.

PROBLEM: International Textile Co.

(cotton)
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Capacity
Baha 2 2 3 3 7 4 7 1 0 1000
Hong 6 7 8 10 2 9 4 8 0 2000
Kor 5 6 8 11 4 9 1 7 0 1000
Nig 14 12 6 9 11 7 5 10 0 2000
Ven 4 3 5 1 9 6 11 4 0 1000
BOT 12 12 13 13 17 14 17 11 0 1000
HKOT 21 22 23 25 17 24 19 23 0 2000
KOT 10 11 13 16 9 14 6 12 0 1000
NOT 20 18 12 15 17 13 11 16 0 2000
VOT 11 10 12 8 16 13 12 17 0 1000
LASh 10 1000 1000 1000 1000 1000 1000 1000 0 500
ChSh 1000 10 1000 1000 1000 1000 1000 1000 0 800
LoSh 1000 1000 10 1000 1000 1000 1000 1000 0 900
MeSh 1000 1000 1000 10 1000 1000 1000 1000 0 900
MaSh 1000 1000 1000 1000 10 1000 1000 1000 0 800
RoSh 1000 1000 1000 1000 1000 10 1000 1000 0 100
ToSh 1000 1000 1000 1000 1000 1000 10 1000 0 200
NYSh 1000 1000 1000 1000 1000 1000 1000 10 0 700
Demand 500 800 900 900 800 100 200 700 14000 Cost
Solution $15,400.00
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Total
Baha 0 300 0 0 0 0 0 700 0 1000
Hong 0 100 0 0 800 0 0 0 1100 2000
Kor 500 300 0 0 0 0 200 0 0 1000
Nig 0 0 900 0 0 100 0 0 1000 2000
Ven 0 100 0 900 0 0 0 0 0 1000
BOT 0 0 0 0 0 0 0 0 1000 1000
HKOT 0 0 0 0 0 0 0 0 2000 2000
KOT 0 0 0 0 0 0 0 0 1000 1000
NOT 0 0 0 0 0 0 0 0 2000 2000
VOT 0 0 0 0 0 0 0 0 1000 1000
LASh 0 0 0 0 0 0 0 0 500 500
ChSh 0 0 0 0 0 0 0 0 800 800
LoSh 0 0 0 0 0 0 0 0 900 900
MeSh 0 0 0 0 0 0 0 0 900 900
MaSh 0 0 0 0 0 0 0 0 800 800
RoSh 0 0 0 0 0 0 0 0 100 100
ToSh 0 0 0 0 0 0 0 0 200 200
NYSh 0 0 0 0 0 0 0 0 700 700
Total 500 800 900 900 800 100 200 700 14000

Note: Two mills will operate below capacity: Hong Kong by 1,100 units and Nigeria by 1,000 units. The
solution is identical to that of Question 1. a., and it has multiple optimal solutions.
 b. The following spreadsheet solution is obtained for the polyester production.

PROBLEM: International Textile Co.

(polyester)
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Capacity
Baha 2 2 3 3 7 4 7 1 0 3000
Hong 6 7 8 10 2 9 4 8 0 2500
Kor 5 6 8 11 4 9 1 7 0 3500
Nig 14 12 6 9 11 7 5 10 0 0
Ven 4 3 5 1 9 6 11 4 0 2000
BOT 12 12 13 13 17 14 17 11 0 3000
HKOT 18 19 20 22 14 21 16 20 0 2500
KOT 13 14 16 19 12 17 9 15 0 3500
NOT 1000 1000 1000 1000 1000 1000 1000 1000 0 0
VOT 10 9 11 7 15 12 11 16 0 2000
LASh 20 1000 1000 1000 1000 1000 1000 1000 0 500
ChSh 1000 20 1000 1000 1000 1000 1000 1000 0 800
LoSh 1000 1000 20 1000 1000 1000 1000 1000 0 900
MeSh 1000 1000 1000 20 1000 1000 1000 1000 0 900
MaSh 1000 1000 1000 1000 20 1000 1000 1000 0 800
RoSh 1000 1000 1000 1000 1000 20 1000 1000 0 100
ToSh 1000 1000 1000 1000 1000 1000 20 1000 0 200
NYSh 1000 1000 1000 1000 1000 1000 1000 20 0 700
Demand 1000 2000 3000 1500 400 700 900 2500 14900 Cost
Solution $52,000.00
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Total
Baha 0 0 500 0 0 0 0 2500 0 3000
Hong 0 0 1400 0 400 700 0 0 0 2500
Kor 1000 1600 0 0 0 0 900 0 0 3500
Nig 0 0 0 0 0 0 0 0 0 0
Ven 0 400 1100 500 0 0 0 0 0 2000
BOT 0 0 0 0 0 0 0 0 3000 3000
HKOT 0 0 0 0 0 0 0 0 2500 2500
KOT 0 0 0 0 0 0 0 0 3500 3500
NOT 0 0 0 0 0 0 0 0 0 0
VOT 0 0 0 1000 0 0 0 0 1000 2000
LASh 0 0 0 0 0 0 0 0 500 500
ChSh 0 0 0 0 0 0 0 0 800 800
LoSh 0 0 0 0 0 0 0 0 900 900
MeSh 0 0 0 0 0 0 0 0 900 900
MaSh 0 0 0 0 0 0 0 0 800 800
RoSh 0 0 0 0 0 0 0 0 100 100
ToSh 0 0 0 0 0 0 0 0 200 200
NYSh 0 0 0 0 0 0 0 0 700 700
Total 1000 2000 3000 1500 400 700 900 2500 14900

Note: The Venezuela mill will operate on an overtime basis, and no customers will be shorted. This
solution is different from that obtained in Question 1. b., and there are multiple optimal solutions.
 c. The following spreadsheet solution is obtained for the silk production.

PROBLEM: International Textile

Co. (silk)
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Capacity
Baha 2 2 3 3 7 4 7 1 0 0
Hong 6 7 8 10 2 9 4 8 0 1000
Kor 5 6 8 11 4 9 1 7 0 500
Nig 14 12 6 9 11 7 5 10 0 0
Ven 4 3 5 1 9 6 11 4 0 0
BOT 1000 1000 1000 1000 1000 1000 1000 1000 0 0
HKOT 31 32 33 35 27 34 29 33 0 1000
KOT 27 28 30 33 26 31 23 29 0 500
NOT 1000 1000 1000 1000 1000 1000 1000 1000 0 0
VOT 1000 1000 1000 1000 1000 1000 1000 1000 0 0
LASh 50 1000 1000 1000 1000 1000 1000 1000 0 500
ChSh 1000 50 1000 1000 1000 1000 1000 1000 0 800
LoSh 1000 1000 50 1000 1000 1000 1000 1000 0 900
MeSh 1000 1000 1000 50 1000 1000 1000 1000 0 900
MaSh 1000 1000 1000 1000 50 1000 1000 1000 0 800
RoSh 1000 1000 1000 1000 1000 50 1000 1000 0 100
ToSh 1000 1000 1000 1000 1000 1000 50 1000 0 200
NYSh 1000 1000 1000 1000 1000 1000 1000 50 0 700
Demand 100 100 200 50 400 200 700 200 5950 Cost
Solution $17,950.00
From To Destination
Source L.A. Chic Lond MexC Man Rome Tok N.Y. Dum* Total
Baha 0 0 0 0 0 0 0 0 0 0
Hong 0 0 200 50 400 200 0 150 0 1000
Kor 0 100 0 0 0 0 350 50 0 500
Nig 0 0 0 0 0 0 0 0 0 0
Ven 0 0 0 0 0 0 0 0 0 0
BOT 0 0 0 0 0 0 0 0 0 0
HKOT 0 0 0 0 0 0 0 0 1000 1000
KOT 100 0 0 0 0 0 350 0 50 500
NOT 0 0 0 0 0 0 0 0 0 0
VOT 0 0 0 0 0 0 0 0 0 0
LASh 0 0 0 0 0 0 0 0 500 500
ChSh 0 0 0 0 0 0 0 0 800 800
LoSh 0 0 0 0 0 0 0 0 900 900
MeSh 0 0 0 0 0 0 0 0 900 900
MaSh 0 0 0 0 0 0 0 0 800 800
RoSh 0 0 0 0 0 0 0 0 100 100
ToSh 0 0 0 0 0 0 0 0 200 200
NYSh 0 0 0 0 0 0 0 0 700 700
Total 100 100 200 50 400 200 700 200 5950

Note: The Korea mill will operate on an overtime basis and no distribution centers will run short. The
solution differs from that of Question 1. c., and there are multiple optimal solutions.

5. It may be possible to open a transshipment center in Europe or Asia to take advantage of bulk shipping
rates. Some mills might be expanded and others closed.