Question: FCC Company has M production sources ( e . g . , production plants ) for satisfying the demand of N different products in each
FCC Company has production sources eg production plants for satisfying the demand of different products in each of time periods. One unit of product dots, can be produced at a cost dollars by production source dots, in period dots, Production source i has a scrap rate and its production capacity for product in period is units. When production source is used in period then a fixed which is independent from the product and the number of units produced by this source, incurs. All products produced by the production sources are distributed to warehouses located at different cities. is the shipment cost of one unit of product from production source to warehouse dots, in period is the demand in units given by warehouse for product in period The initial inventory level of each product is zero, and product may be stored from period to period at a cost dollars per unit. The storage space requirement in volume of product is and the storage capacity in volume of warehouse in any month is Shortages of product in period are backordered at a cost of dollars per unit; but shortages in the last period are not allowed.
Formulate the problem as a mixedinteger linear programming MILP model. That is define the decision variables explicitly, write the mathematical expressions for the objective function and constraints in CLOSED FORM, and explain them clearly.
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