1. (50 marks) Huawei decided to expand in Africa. Three possible factory sites are ava Nairobi,...

 

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1. (50 marks) Huawei decided to expand in Africa. Three possible factory sites are ava Nairobi, Cape Town, and Accra. Factory building costs and transport costs to major customer zones from each site are given below. Factory Site Building Cost (per million unit capacity) Cape Town Nairobi Accra Customer Zone #1 #2 #3 #4 560,000 340,000 310.000 Demand/yr Model: 18 million 15 million 9 million 26 million Production Cost/unit 60 75 45 6 8 16 2 Transport Costs/unit Cape Town Nairobi 3 5 7 5 Accra 4 12 6 22 Huawei has a building budget of 40 million USD next year. Huawei does not wish annual logistics costs to exceed 40% of total production costs. Write a model that decides which factories will be built in what capacity while meeting annual demand and minimizing all costs. USE PARAMETERS BELOW! Parameters: TRC(ij): transport cost; D(j): demand for zone j; B(i): building cost per million capacity for site i; pr(i): production cost for site i Variables: 1. (50 marks) Huawei decided to expand in Africa. Three possible factory sites are ava Nairobi, Cape Town, and Accra. Factory building costs and transport costs to major customer zones from each site are given below. Factory Site Building Cost (per million unit capacity) Cape Town Nairobi Accra Customer Zone #1 #2 #3 #4 560,000 340,000 310.000 Demand/yr Model: 18 million 15 million 9 million 26 million Production Cost/unit 60 75 45 6 8 16 2 Transport Costs/unit Cape Town Nairobi 3 5 7 5 Accra 4 12 6 22 Huawei has a building budget of 40 million USD next year. Huawei does not wish annual logistics costs to exceed 40% of total production costs. Write a model that decides which factories will be built in what capacity while meeting annual demand and minimizing all costs. USE PARAMETERS BELOW! Parameters: TRC(ij): transport cost; D(j): demand for zone j; B(i): building cost per million capacity for site i; pr(i): production cost for site i Variables:

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Step 22 Step 1 Linear programming is a widely used decision making approach i... View the full answer