Question: Consider a company with three potential sites for installing its facilities/warehouses and five demand points. Each site j has a yearly activation cost Fj This

Consider a company with three potential sites for installing its facilities/warehouses and five demand points. Each site j has a yearly activation cost Fj This volume is limited to a given maximum amount that may be handled yearly, Mj. Additionally, there is a transportation cost cij per unit serviced from facility j to the demand point i Customer i Annual Demand Fi Mj 4 1 2500 450 2 2500 450 3 2500 450 120 390 240 350 220 Cij 6 4 2 8 4 Xij: integer, Yj: binary 8 7 6 3 2 Formulate the problem, 3 12 41 1 Find optimal solution and discuss capacity constraints effect on the solution. Consider a company with three potential sites for installing its facilities/warehouses and five demand points. Each site j has a yearly activation cost Fj This volume is limited to a given maximum amount that may be handled yearly, Mj. Additionally, there is a transportation cost cij per unit serviced from facility j to the demand point i Customer i Annual Demand Fi Mj 4 1 2500 450 2 2500 450 3 2500 450 120 390 240 350 220 Cij 6 4 2 8 4 Xij: integer, Yj: binary 8 7 6 3 2 Formulate the problem, 3 12 41 1 Find optimal solution and discuss capacity constraints effect on the solution

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