PROTRAC is a manufacturer of diesel engines that has four assembly plants in Europe. They are located
in Leipzig (Germany), Nancy (France), Liege (Belgium) and Tilburg (Netherlands). The engines parts
come in kits from the United States for final assembly in Europe. The engines are shipped from the US to
three ports: in Amsterdam (Netherlands), Antwerp (Belgium) and Le Havre (France). Upon arrival at the
destination port, engines are shipped to the production plants.
1) PROTRAC must decide how many engines to send from each harbor to each plant. Using solver in
Excel determine the solution that would minimize cost for PROTRAC.
2) Realizing that they may need more flexibility in their network, PROTRAC negotiated with a fourth
port located in Rotterdam. The shipping costs from Rotterdam are included below. They can ship up
to 300 engines through Rotterdam, on top of the capacity already available at of other ports. Would
this solution save money for PROTRAC? If so, how much? If not, how much more expensive is it?