Question: ABC Company operates a 4 - stage supply chain - suppliers, plants, distribution centers and demand regions. The two manufacturing plants are located in Austin
ABC Company operates a stage supply chain suppliers, plants, distribution centers and demand regions. The two manufacturing plants are located in Austin and Charlotte, each with annual capacity of units. The supply chain serves markets as Asia Pacific with demand units Europe North America Middle East South America ABC works with suppliers in China, Australia, and Kazakhstan.
ABC is considering potential locations for distribution center: Houston $ million; New York $ million; Los Angeles $ million The capacity will be units.
Transportation costs are given as follows:
Houston New York Los Angeles
Austin $ $ $
Charlotte $ $ $
AsiaPacific $ $ $
Europe $ $ $
North America $ $ $
Middle East $ $ $
South America $ $ $
China Australia Kazakhstan
Austin $ $ $
Charlotte $ $ $
The objective is to minimize the total cost of investment and transportation such that all demands are met.
a Write the mathematical optimization model for this problem. Define the appropriate notation for decision variables and present the objective function and constraints.
b Solve your model using an optimization solver and find the optimal facility location and distribution plan.
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