Breadco Bakeries is a new bakery chain that sells bread to customers throughout the state of Indiana.Breadco is considering building bakeries in three locations: Evansville, Indianapolis, and South Bend.Each bakery can bake as many as 900,000 loaves of bread each year. The cost of building a bakery at eachsite is $5 million in Evansville, $4 million in Indianapolis, and $4.5 million in South Bend. To simplify theproblem, we assume that Breadco has only three customers, whose demands each year are 700,000 loaves(customer 1); 400,000 loaves (customer 2); and 300,000 loaves (customer 3). The total cost of baking andshipping a loaf of bread to a customer is given in Table 1.From ToEvansvilleIndianapolisSouth BendCustomer 1 Customer 216¢40¢45¢34¢30¢45¢Customer 326¢35¢23¢Table 1: Production & shipping costsAssume that future shipping and production costs are discounted at a rate of 11%per year. Assume thatonce built, a bakery lasts forever.1. Formulate an integer optimization model to minimize Breadco's total cost of meeting demand (presentand future). (Hint: You will need the fact that for x < 1, a + ax + ax² +ax³ + ... = a/(1-x).)2. Obtain an optimal solution to the problem using AMPL.3. How would you modify the formulation if either Evansville or South Bend must produce at least800,000 loaves per year?

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Answered: Breadco Bakeries is a new bakery chain…

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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