Question: Consider the following as a multi-commodity facility location problem. A company with three potential sites for installing its facilities/warehouses and two demand points of two

Consider the following as a multi-commodity facility location problem. A company with three potential sites for installing its facilities/warehouses and two demand points of two different kinds of products. Each site has a yearly activation cost (i.e., an annual leasing expense that is incurred for using it, independently of the volume it services). This volume is limited to a given maximum amount that may be handled yearly, that is the capacity of each facility per product. Additionally, there is a transportation cost per unit serviced from each facility to every demand point. These data are shown in the table below. Pay special attention to the aggregated capacity, that means that each facility can produce a limited indistinct amount of products, the sum of the produced commodities of each type should not exceed such capacity. Formulate a linear programming model to solve the optimization problem.

Customer

1

2

Product

1

2

1

2

Demand

80

270

250

180

Facility

Fixed

Cost

AGGREGATED Capacity

1

4

5

6

10

1000

600

2

6

4

3

8

1000

500

3

9

7

4

4

1000

400

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!