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
Cap units. When production source is used in period then a fixed cost 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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