Question: it is supply chain, plz show all work! Gravity Problem 2. Consider a company producing two types of products: Type A and type B. The
it is supply chain, plz show all work!
Gravity Problem 2. Consider a company producing two types of products: Type A and type B. The company needs to determine plant locations serve M distribution centers located in different market regions, each with known demand for both products. The shared capacity of the plant can be used to produce both types of products. Both products consume the same capacity in the plant. For example, in order to produce 100 units of A and 75 units of B, a total of 175 units of capacity is required. There is a fixed cost of opening a plant at a location and the cost varies over the size of the plant. The company incurs shipment cost for each unit shipped between a plant and a distribution center which is proportional to the transportation distance. The cost also depends on the type of the product. a. Develop and write down a mathematical model for the above problem that can be used to optimize the total cost for the company using the Gravity Method. b. Suggest a solution procedure c. Apply your solution to the attached data Gravity Problem 2. Consider a company producing two types of products: Type A and type B. The company needs to determine plant locations serve M distribution centers located in different market regions, each with known demand for both products. The shared capacity of the plant can be used to produce both types of products. Both products consume the same capacity in the plant. For example, in order to produce 100 units of A and 75 units of B, a total of 175 units of capacity is required. There is a fixed cost of opening a plant at a location and the cost varies over the size of the plant. The company incurs shipment cost for each unit shipped between a plant and a distribution center which is proportional to the transportation distance. The cost also depends on the type of the product. a. Develop and write down a mathematical model for the above problem that can be used to optimize the total cost for the company using the Gravity Method. b. Suggest a solution procedure c. Apply your solution to the attached data
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