Question: Objective function = Minimize the total cost of supply chain? what is the solution? Use the sensitivity analysis report to solve questions on increased capacity
Objective function = Minimize the total cost of supply chain? what is the solution? Use the sensitivity analysis report to solve questions on increased capacity or plant location shutdown?


All costs are x1000 USS Table 1. Production + Transportation Costs from Plants to Warehouses Plant Plant WH 1 WH 2 WH 3 Plant Capacity (x1000 units) Plant WH 1 WH 2 WH 3 Capacity (x1000 units Plant 1 Location S 1, 325 $ 1,550 1,160 45 Plant 1 Location 0.0 D.O 30.0 30.0 Plant 2 Location S 1,100 5 1,350 $ 1,550 55 Plant 2 Location 30.0 20.0 0.0 50.0 WH Capacity (x1000) 30 20 30 WH Capacity (x1000) 30.0 20.0 30.0 Table 2. Distribution Costs from Warehouses to Markets Warehouse Market 1 Market 2 Market 3 Market 4 Warehouse Market 1 |Market 2 |Market 3 |Market 4 WH 1 600 $ 570 $ 400 $ 195 WH 0.0 0.0 15.0 15.0 WH 2 500 363 $ 605 508 WH 2 0.0 20.0 0.0 0.0 WH S 522 S 700 800 650 WH 3 25.0 D.O 5.0 E[Market demand] x1000 20 15 20 E[Market sales] x1000 25.0 20.0 15.0 20.0 Objective function = Minimize the total cost of supply chain = 131,785 $ 131,785,000 Net Landed Profit for the Cost Minimization Problem = 4,040 Plant Market 1 Market 2 Market 3 Market 4 Plant 1 Location Plant 2 Location Profit margin is at least 5% 80.00 > = 138,374.25Profit margin is at least 5% 80.00 138,374.25 Plant production maximum capacity constraints Total use of Max Capacity Plant 1 Location 30.0 45 Plant 2 Location 50.0 55 Total Max Cap 100 Cap. Constraints for the flow of products through the WH Used Capacity Max Cap @ W/H j WH 1 30.0 30 WH 2 20.0 20 WH 3 30.0 30 Flow balanceconstraints for warehouses INBOUND OUTBOUND WH 1 30.0 30.0 WH 2 20.0 = 20.0 WH 3 30.0 E 30.0 Market constraints `Distribution to Market Market Demand Sale prices Market 1 25.00 25.0 1,650.00 Market 2 20.00 20.0 1,700.00 Market 3 15.00 15.0 1,705.00 Market 4 20.00 20.0 1,750.00 Total Demand 80
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