Question: For this problem, let us help a company to plan their daily operations for T consecutive days. This company works as a supplier producing a

 For this problem, let us help a company to plan their

For this problem, let us help a company to plan their daily operations for T consecutive days. This company works as a supplier producing a single type of item and aims to provide necessary supply to n retailers in the city using a vendor-managed inventory (VMI) system. The company has one truck with capacity Q that starts from depot (node 0 ) and delivers all items to retailers once a day before customers come to these retailers. For each day t[T], a retailer i[n] has a demand dit. The daily holding cost to store a single unsold item at retailer n is hi. The supplier company has just enough inventory at the depot to supply all retailers for the planning horizon (exactly equal to the sum of all daily demand of all retailers over the planning horizon), and the daily holding cost to store a single unit at the depot is h0. No other inventory is gained by the supplier during the planning horizon and back-orders are not allowed. The cost of travel from node i to node j is cij (includes node 0 ). As a planner, your objective is to minimize total (travel and holding) cost and satisfy all the demand. Model this scenario as an IP. Be sure to clearly define all variables and parameters

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!