Variable Cost ($) Fixed Cost Facility Product Product Product ($) Y Facility 1 Facility 2 8,000,000 1200 1600 900 6,000,000 1500 1800 1100 4,000,000 Facility 3 Facility 4 1700 1900 1900 1200 3,000,000 2200 1400 A company has 4 production facilities. Each facility is eligible to produce Product X, Product Y or Product Z, but it can only produce one of these products. The annual fixed cost of operating each facility and the variable cost of producing a product of each type at each facility are given in the table. The company must produce 5000 units of each type of product in a year. Formulate an IP to minimize the total annual production cost satisfying the following constraints; Each facility can produce only one type of product. 1) The total production of each type of product must be at a single facility. For instance, if any Products X are produced at facility 1, then all Products X must be produced there. 2) If facilities 3 and 4 are used, then facility 1 must also be used.
Variable Cost ($) Fixed Cost Facility Product Product Product ($) Y Facility 1 Facility 2 8,000,000 1200 1600 900 6,000,000 1500 1800 1100 4,000,000 Facility 3 Facility 4 1700 1900 1900 1200 3,000,000 2200 1400 A company has 4 production facilities. Each facility is eligible to produce Product X, Product Y or Product Z, but it can only produce one of these products. The annual fixed cost of operating each facility and the variable cost of producing a product of each type at each facility are given in the table. The company must produce 5000 units of each type of product in a year. Formulate an IP to minimize the total annual production cost satisfying the following constraints; Each facility can produce only one type of product. 1) The total production of each type of product must be at a single facility. For instance, if any Products X are produced at facility 1, then all Products X must be produced there. 2) If facilities 3 and 4 are used, then facility 1 must also be used.
Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter3: Introduction To Linear Programming
Section3.9: Production Process Models
Problem 11P
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