capacity planning problem A retail chain is considering whether to expand a distribution center or not. If
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Question:
capacity planning problem
A retail chain is considering whether to expand a distribution center or not.
If so the level of the expansion should be at least units but not more
than units. The expansion incurs a high initial cost and the cost of
expansion follows a nonlinear cost function. Disregarding all other information, formulate the expansion decision constraints only.
Decision variables:
X the amount of expansion to be made
y if the decision for expansion is yes
if the decision for expansion is no
We will ignore the objective function for the time being and will discuss
it later.
Constraints:
If the decision for the expansion is yes, then it should be at least units
but not more than that is
X
X
To incorporate the yesno decision with the above constraints, we rewrite
them as follows:
X y
X y
Related Book For
Statistical Reasoning For Everyday Life
ISBN: 978-0134494043
5th Edition
Authors: Jeff Bennett, William Briggs, Mario Triola
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