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
Get step-by-step solutions from verified subject matter experts
