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Facility Location. A paper products manufacturer has enough capital to build and manage some additional manufacturing plants in the United States in order to meet increased demand in three cities: New York City, NY; Los Angeles, CA; and Topeka, KS. The company is considering building in Denver, CO; Seattle, WA; and St. Louis, MO. Max Operating Capacity 400 tons/day 700 tons/day Denver Seattle $10/ton $17/tor $11/ton.. $5/ton $18/ton....... $28/ton Los Angeles Topeka New York City Figure 1: Graphical representation of the given data Unmet Demand 300 tons/day 100 tons/day 500 tons/day • Due to geographic constraints, plants in Denver and Seattle would have a maximum operating capacity k; of 400 tons/day and 700 tons/day respectively. The cost fi of building plants in these cities is fi = $5,000,000 in Denver and f2 $10,000,000 in Seattle. = • The cost cij per ton of transporting paper from city i to city j is outlined in Figure 1. • The unmet demand d; for Los Angeles, Topeka, and New York City are 300 tons/day, 100 tons/day, and 500 tons/day, respectivey. The problem is to decide which plants to build, how much paper to produce in each plant, and how best to ship paper from the plants to the customers in the way which minimizes total expense.

Facility Location. A paper products manufacturer has enough capital to build and manage some additional manufacturing plants in the United States in order to meet increased demand in three cities: New York City, NY; Los Angeles, CA; and Topeka, KS. The company is considering building in Denver, CO; Seattle, WA; and St. Louis, MO. Max Operating Capacity 400 tons/day 700 tons/day Denver Seattle $10/ton $17/tor $11/ton.. $5/ton $18/ton....... $28/ton Los Angeles Topeka New York City Figure 1: Graphical representation of the given data Unmet Demand 300 tons/day 100 tons/day 500 tons/day • Due to geographic constraints, plants in Denver and Seattle would have a maximum operating capacity k; of 400 tons/day and 700 tons/day respectively. The cost fi of building plants in these cities is fi = $5,000,000 in Denver and f2 $10,000,000 in Seattle. = • The cost cij per ton of transporting paper from city i to city j is outlined in Figure 1. • The unmet demand d; for Los Angeles, Topeka, and New York City are 300 tons/day, 100 tons/day, and 500 tons/day, respectivey. The problem is to decide which plants to build, how much paper to produce in each plant, and how best to ship paper from the plants to the customers in the way which minimizes total expense.

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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Facility Location. A paper products manufacturer has enough capital to build and manage some additional manufacturing plants in the United States in order to meet increased demand in three cities: New York City, NY; Los Angeles, CA; and Topeka, KS. The company is considering building in Denver, CO; Seattle, WA; and St. Louis, MO. Max Operating Capacity 400 tons/day 700 tons/day Denver Seattle $10/ton $17/tor $5/ton $11/ton.... $18/ton.... $28/ton Los Angeles Topeka New York City Figure 1: Graphical representation of the given data = • The cost fi of building plants in these cities is fi $10,000,000 in Seattle. Unmet Demand 300 tons/day 100 tons/day 500 tons/day • Due to geographic constraints, plants in Denver and Seattle would have a maximum operating capacity kį of 400 tons/day and 700 tons/day respectively. $5,000,000 in Denver and f2 = • The cost cij per ton of transporting paper from city i to city j is outlined in Figure 1. • The unmet demand d, for Los Angeles, Topeka, and New York City are 300 tons/day, 100 tons/day, and 500 tons/day, respectivey. The problem is to decide which plants to build, how much paper to produce in each plant, and how best to ship paper from the plants to the customers in the way which minimizes total expense.
Transcribed Image Text:Facility Location. A paper products manufacturer has enough capital to build and manage some additional manufacturing plants in the United States in order to meet increased demand in three cities: New York City, NY; Los Angeles, CA; and Topeka, KS. The company is considering building in Denver, CO; Seattle, WA; and St. Louis, MO. Max Operating Capacity 400 tons/day 700 tons/day Denver Seattle $10/ton $17/tor $5/ton $11/ton.... $18/ton.... $28/ton Los Angeles Topeka New York City Figure 1: Graphical representation of the given data = • The cost fi of building plants in these cities is fi $10,000,000 in Seattle. Unmet Demand 300 tons/day 100 tons/day 500 tons/day • Due to geographic constraints, plants in Denver and Seattle would have a maximum operating capacity kį of 400 tons/day and 700 tons/day respectively. $5,000,000 in Denver and f2 = • The cost cij per ton of transporting paper from city i to city j is outlined in Figure 1. • The unmet demand d, for Los Angeles, Topeka, and New York City are 300 tons/day, 100 tons/day, and 500 tons/day, respectivey. The problem is to decide which plants to build, how much paper to produce in each plant, and how best to ship paper from the plants to the customers in the way which minimizes total expense.
Model this problem as an Integer Program. Let w; represent the binary choice of whether or not to build plant i and rij represent the amount of paper to be sent from plant i to customer j for i = {1, 2} and je {1,2,3}
Transcribed Image Text:Model this problem as an Integer Program. Let w; represent the binary choice of whether or not to build plant i and rij represent the amount of paper to be sent from plant i to customer j for i = {1, 2} and je {1,2,3}
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