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Write The Model and Find The Optimal Lowest Cost Network

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Melvin Shaji
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15 views2 pages

Write The Model and Find The Optimal Lowest Cost Network

Uploaded by

Melvin Shaji
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Consider a company with three potential sites for installing its facilities/warehouses and five demand points.

Each site has a


leasing expense that is incurred for using it, independently of the volume it services. Company decided to install the facility
transportation costs, fixed costs, and capacities are shown in Table. Write the model and find the optimal lowest cost netwo

Transportation cost
Site Customer 1 Customer 2 Customer 3 Customer 4 Cutomer 5 Fixed Cost Capacity
A 4 5 6 8 10 1000 500
B 6 4 3 5 8 1000 500
C 9 7 4 3 4 1000 500
Demand 80 270 250 160 180

Transportation cost
Site Customer 1 Customer 2 Customer 3 Customer 4 Customer 5 Capacity
A 0 0 0 0 0 0
B 80 270 150 0 0 1
C 0 0 100 160 180 1A
B
C
e demand points. Each site has a yearly activation cost i.e., an annual
any decided to install the facility in just a few sites. Demand,
nd the optimal lowest cost network.

Customer Customer Customer Customer Cutomer


1 2 3 4 5
Unmet
Demand 0 0 0 0 0

Excess Capacity
0 Objective function
0
60 cost 5610

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