Solve the problem of simultaneous location of facilities by attending to the following instructions specific:
1). With the exception of demand points (retailers), it is allowed to close facilities at any level of the supply chain.
2). The sales management has agreed that the demand (at the retailer level) will be satisfied to a maximum of 95%.
3). The supply chain strategic planning team has determined that no facilities (raw material suppliers, production plants, and warehouses) must operate at less than 60% of its capacity. If required, it is preferred to close operations at said facility.
Important note: Fixed costs can be placed as constant values to the model.
Determine the location of the facilities as well as the quantities that are shipped between levels of the supply chain.
supply that minimizes total costs and meets established requirements. For the solution use the software of your choice.
 

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Raw material supplier Baltimore Cheyenne Salt Lake Plant Atlanta Boston Chicago Denver S $ SS S Transportation and production costs ($/unit) Plants SSS Atlanta $ 100 $ 120 $ 80 $ $ 150 $ 175 $ 165 $ 230 $ Boston Transp. & Prod. costs ($/unit) Warehouses Kentucky Nebraska Chicago Denver 80 $ 180 $ 130 $ Arizona 190 $ 210 S 75 $ 150 $ 120 $ 220 $ 175 $ 240 275 200 120 140 45 38 Capacity (#units) 900 $ 600 $ 1,200 $ 800 $ 3,500 Capacity (#units) Annual Fixed cost Million $ 1,000 $ 1,200 $ 1,500 $ 3,700 4.50 6.80 Annual Fixed cost Million $ 1.25 0.80 0.95 4.90 3.50 Raw material supplier Baltimore Cheyenne Salt Lake Plant Atlanta Boston Chicago Denver S $ SS S Transportation and production costs ($/unit) Plants SSS Atlanta $ 100 $ 120 $ 80 $ $ 150 $ 175 $ 165 $ 230 $ Boston Transp. & Prod. costs ($/unit) Warehouses Kentucky Nebraska Chicago Denver 80 $ 180 $ 130 $ Arizona 190 $ 210 S 75 $ 150 $ 120 $ 220 $ 175 $ 240 275 200 120 140 45 38 Capacity (#units) 900 $ 600 $ 1,200 $ 800 $ 3,500 Capacity (#units) Annual Fixed cost Million $ 1,000 $ 1,200 $ 1,500 $ 3,700 4.50 6.80 Annual Fixed cost Million $ 1.25 0.80 0.95 4.90 3.50

Answer rating: 100% (QA)

The problem of simultaneous location of facilities can be solved using a mixedinteger programming MI... View the full answer