Zudo Furniture produces living room sets in its three factories, and then ships the sets to...
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Zudo Furniture produces living room sets in its three factories, and then ships the sets to two depots. Then, these sets are shipped from depots to three stores. The network model of this supply chain is given below, with the unit shipping cost ($) specified on each branch. Factory 1 Factory 2 Factory 3 20 15 25 18 20 14 Depot 1 Depot 2 12 10 8 10 11 b) Clearly define deviation variables. c) Write the constraint for goal 1. d) Write the constraint for goal 2. e) Write the objective function that minimizes total penalty cost. 9 Store 1 Store 2 Store 3 The maximum number of living room sets that can be produced are 600, 750, 850 in factories 1, 2, and 3, respectively. Monthly demands are 700, 800, and 900 for stores 1, 2, and 3, respectively. a) Formulate a linear programming model for Zudo to meet the demand of three stores and transport the sets from the factories to the stores at minimum cost. The Operations Team of Zudo has realized that satisfying all demand is not possible, and it has set two goals: Goal 1: Not meeting the demand for chairs will be allowed, but satisfying as much as possible is aimed. If Zudo does not satisfy demand, there will be a penalty cost for losing customers. Penalty costs are $35, $40, $44 for each unsatisfied demand in store 1, store 2, and store 3, respectively. Goal 2: Increasing manufacturing capacity in the factories will be allowed. For overtime work, Zudo will incur $18 per extra set produced in factory 1 (above 600 sets), $14 per extra set produced in factory 2 (above 750 sets), and $20 per extra set produced in factory 3 (above 850 units). Now, you will formulate the problem as weighted goal programming. Zudo Furniture produces living room sets in its three factories, and then ships the sets to two depots. Then, these sets are shipped from depots to three stores. The network model of this supply chain is given below, with the unit shipping cost ($) specified on each branch. Factory 1 Factory 2 Factory 3 20 15 25 18 20 14 Depot 1 Depot 2 12 10 8 10 11 b) Clearly define deviation variables. c) Write the constraint for goal 1. d) Write the constraint for goal 2. e) Write the objective function that minimizes total penalty cost. 9 Store 1 Store 2 Store 3 The maximum number of living room sets that can be produced are 600, 750, 850 in factories 1, 2, and 3, respectively. Monthly demands are 700, 800, and 900 for stores 1, 2, and 3, respectively. a) Formulate a linear programming model for Zudo to meet the demand of three stores and transport the sets from the factories to the stores at minimum cost. The Operations Team of Zudo has realized that satisfying all demand is not possible, and it has set two goals: Goal 1: Not meeting the demand for chairs will be allowed, but satisfying as much as possible is aimed. If Zudo does not satisfy demand, there will be a penalty cost for losing customers. Penalty costs are $35, $40, $44 for each unsatisfied demand in store 1, store 2, and store 3, respectively. Goal 2: Increasing manufacturing capacity in the factories will be allowed. For overtime work, Zudo will incur $18 per extra set produced in factory 1 (above 600 sets), $14 per extra set produced in factory 2 (above 750 sets), and $20 per extra set produced in factory 3 (above 850 units). Now, you will formulate the problem as weighted goal programming.
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Based on the information provided lets start by defining the variables and formulating the linear programming model for Zudo to transport living room ... View the full answer
Related Book For
Business Statistics A Decision Making Approach
ISBN: 9780133021844
9th Edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry
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