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1. Huawei decided to expand in Africa. Three possible factory sites are available! Nairobi, Cape Town, and Accra. Factory building costs and transport costs to major customer zones from each site are given below. Factory Site Cape Town Nairobi Production Cost/unit 60 Building Cost (per million unit capacity) 560,000 340,000 75 45 Accra 310,000 Customer Zone Demand/yr Transport Costs/unit Cape Town Nairobi Accra #1 18 million # 2 15 million 8. 12 #3 9 million 26 million 16 # 4 2 15 22 Huawei has a building budget of 40 million USD next vear, Huawei does not wish annual logistics costs to exceed 40% of total production costs. Write a model that decides which factories will be built in what capacity while meeting annual demand and minimizing all costs. USE PARAMETERS BELOW! Parameters: TRC(ij): transport cost; D(j): demand for zone j; B(i): building cost per million capacity for site i; pr(i): production cost for site i Variables:

1. Huawei decided to expand in Africa. Three possible factory sites are available! Nairobi, Cape Town, and Accra. Factory building costs and transport costs to major customer zones from each site are given below. Factory Site Cape Town Nairobi Production Cost/unit 60 Building Cost (per million unit capacity) 560,000 340,000 75 45 Accra 310,000 Customer Zone Demand/yr Transport Costs/unit Cape Town Nairobi Accra #1 18 million # 2 15 million 8. 12 #3 9 million 26 million 16 # 4 2 15 22 Huawei has a building budget of 40 million USD next vear, Huawei does not wish annual logistics costs to exceed 40% of total production costs. Write a model that decides which factories will be built in what capacity while meeting annual demand and minimizing all costs. USE PARAMETERS BELOW! Parameters: TRC(ij): transport cost; D(j): demand for zone j; B(i): building cost per million capacity for site i; pr(i): production cost for site i Variables:

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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1. Huawei decided to expand in Africa. Three possible factory sites are available: Nairobi, Cape Town, and Accra. Factory building costs and transport costs to major customer zones from each site are given below. Production Cost/unit 60 Factory Site Building Cost (per million unit capacity) Cape Town Nairobi Accra 560,000 75 340,000 45 310,000 Customer Zone Demand/yr Transport Costs/unit Cape Town Nairobi Accra #1 # 2 18 million 12 15 million #3 7 9 million 26 million 16 #4 22 Huawei has a building budget of 40 million USD next year. Huawei does not wish annual logistics costs to exceed 40% of total production costs. Write a model that decides which factories will be built in what capacity while meeting annual demand and minimizing all costs. USE PARAMETERS BELOW! Parameters: TRC(ij): transport cost; D(j): demand for zone j; B(i): building cost per million capacity for site i; pr(i): production cost for site i Variables: Model:
Transcribed Image Text:1. Huawei decided to expand in Africa. Three possible factory sites are available: Nairobi, Cape Town, and Accra. Factory building costs and transport costs to major customer zones from each site are given below. Production Cost/unit 60 Factory Site Building Cost (per million unit capacity) Cape Town Nairobi Accra 560,000 75 340,000 45 310,000 Customer Zone Demand/yr Transport Costs/unit Cape Town Nairobi Accra #1 # 2 18 million 12 15 million #3 7 9 million 26 million 16 #4 22 Huawei has a building budget of 40 million USD next year. Huawei does not wish annual logistics costs to exceed 40% of total production costs. Write a model that decides which factories will be built in what capacity while meeting annual demand and minimizing all costs. USE PARAMETERS BELOW! Parameters: TRC(ij): transport cost; D(j): demand for zone j; B(i): building cost per million capacity for site i; pr(i): production cost for site i Variables: Model:
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