If the mathematical formulation only had an objective that maximized the amount of demand within a certain limit (say, 800km) and no other objective or restriction on the distance, how would customers outside of the limit be assigned to warehouses?
Answer to relevant QuestionsYou can access and download the model as well as detailed instructions for further analysis within the Chen’s End of Chapter Questions.zip file on the book web site. You will be asked to create and review Chen’s ...Open the file LP Transportation Problem.zip. This file contains more directions and the model. In this case, you have four coal mines and 15 power stations you are servicing. We are interested in minimizing the average ...The fluctuating price of oil has a big impact on the cost of a supply chain. As oil prices increase, so does the cost of transportation. Recent fluctuations in the price of oil have taught supply chain managers that they ...If it costs $10 million to build a new facility and you expect to depreciate the building over 20 years, why wouldn’t you include the full $10 million when you are building a model with a year’s worth of demand? In the Illinois Quality Parts case study, we first ran the baseline model with a rate of $2/mile for all lanes. Figure 8.14 shows the output of this scenario, showing total cost and total miles traveled out of each ...
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