Sunchem can use the projections to build an optimization model as shown below. In this case,...

  

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Sunchem can use the projections to build an optimization model as shown below. In this case, the shipments from each plant to every market are assumed to be variable and solved to find the minimum total cost. This is done by utilizing the following constraints: • Each plant runs at least at half capacity. • Sum of all shipments from the plant needs to be less than or equal to the capacity in that plant. All production volumes are non-negative. • All calculations are performed at the exchange rates provided. Given 5: five manufacturing plants %3D m = 5: number of regional markets. Dj Annual tons of ink needed for regional market j K; = Maximum possible capacity of manufacturing plants. Especially for (a) lower limit for capacity is 50%*Ki. Cost of shipping one ton of printing ink from plant i to regional market j Cij %3! pi = Cost of producing one ton of printing ink at plant i Xij Tons of printing ink shipped from site i to regional market j. !! It should be integer and non-negative Sunchem can use the projections to build an optimization model as shown below. In this case, the shipments from each plant to every market are assumed to be variable and solved to find the minimum total cost. This is done by utilizing the following constraints: • Each plant runs at least at half capacity. • Sum of all shipments from the plant needs to be less than or equal to the capacity in that plant. All production volumes are non-negative. • All calculations are performed at the exchange rates provided. Given 5: five manufacturing plants %3D m = 5: number of regional markets. Dj Annual tons of ink needed for regional market j K; = Maximum possible capacity of manufacturing plants. Especially for (a) lower limit for capacity is 50%*Ki. Cost of shipping one ton of printing ink from plant i to regional market j Cij %3! pi = Cost of producing one ton of printing ink at plant i Xij Tons of printing ink shipped from site i to regional market j. !! It should be integer and non-negative

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This is clearly influenced by the production cost per ton and the local market demand Low cost struc... View the full answer