Question: A company decided to develop its activities by creating two new stores. Three places are considered for this aim. The following figure shows the possible

A company decided to develop its activities by

A company decided to develop its activities by creating two new stores. Three places are considered for this aim. The following figure shows the possible transportation relations between mentioned places and four new customers. Also this figure contains the transportation cost of one unit between the places and the customers. The capacity of each store (if it is built), demand of each customer initial investment cost for constructing the store at each place and its inventory cost is summarized in the following table. Formulate an integer linear programming problem to choose the best places for creating these stores and minimize the total investment, transportation and inventory cost. Place Initial Inventory cost Capacity (Un 5 A2 investment() (Sper unit) D1 1 667000 55 560 3 2 450000 430 60 5 3 510000 45 240 8 D3 A1 A D2 Customers Demand 2 3 1 4 3 3 150 120 190 220 2 D4 A3 A company decided to develop its activities by creating two new stores. Three places are considered for this aim. The following figure shows the possible transportation relations between mentioned places and four new customers. Also this figure contains the transportation cost of one unit between the places and the customers. The capacity of each store (if it is built), demand of each customer initial investment cost for constructing the store at each place and its inventory cost is summarized in the following table. Formulate an integer linear programming problem to choose the best places for creating these stores and minimize the total investment, transportation and inventory cost. Place Initial Inventory cost Capacity (Un 5 A2 investment() (Sper unit) D1 1 667000 55 560 3 2 450000 430 60 5 3 510000 45 240 8 D3 A1 A D2 Customers Demand 2 3 1 4 3 3 150 120 190 220 2 D4 A3

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!