Question: Consider a supply chain network with two potential sites for warehouses and four retailer regions. The fixed costs of locating warehouses at the three sites

Consider a supply chain network with two
Consider a supply chain network with two potential sites for warehouses and four retailer regions. The fixed costs of locating warehouses at the three sites are given as follows: Site 1: $500,000 Site 2: $600,000 The capacities of the two sites are 60,000 and 65,000 respectively. The retailer demands are 10,000, 20,000, 15,000 and 30,000 units respectively The unit transportation costs ($) are given in the following table: R R2 R3 R4 Site 1 10 8 00 4 Site 2 4 12 9 3 ) Formulate a mixed integer linear program to determine the optimal location and distribution plan that will minimize the total cost. Assume each retailer has to be supplied by exactly one warehouse Solve using Excel Solver. a. What is the total cost of your optimal solution? b. What is the distribution plan proposed by your solution to satisfy customer demand

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!