Modify the original Grand Prix example by increasing the demand at each region by 200, so that

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Modify the original Grand Prix example by increasing the demand at each region by 200, so that total demand is well above total plant capacity. This means that some demands cannot be supplied. Suppose there is a unit “penalty” cost at each region for not supplying an automobile. Let these unit penalty costs be $600, $750, $625, and $550 for the four regions. Develop a model to minimize the sum of shipping costs and penalty costs for unsatisfied demands.

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Data Analysis and Decision Making

ISBN: 978-0538476126

4th edition

Authors: Christian Albright, Wayne Winston, Christopher Zappe

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