Question: Please solve by showing all steps with algebraic formulations 4. OM Inc. is designing its supply chain; OM has three factories (labeled 1,2,3) that supply

Please solve by showing all steps with algebraic formulations

Please solve by showing all steps with algebraic formulations 4. OM Inc.

4. OM Inc. is designing its supply chain; OM has three factories (labeled 1,2,3) that supply five markets (labeled 4,5,6,7,8). The unit cost of shipping goods from a factory to a market is cij, where i is a factory and j in a market. Each factory can supply s i units (i=1,2,3), and each market has a demand of d j units (j=4,5,6,7,8). OM uses the following LP to minimize shipping costs: Decision variable: x ij : units shipped from factory i(i=1,2,3) to market j(j=4,5,6,7,8) Min z= sum_(i=1,2,3; j =4,5,6,7,8) c ij x ij s.t. sum_(i=1,2,3) x ij =d di, forall j=4,5,6,7,8 (e.g., if j=4 then x_14+x_24+x_34=d_4) sum_(j j=4,5,6,7,8)ij=0, forall i=1,2,3;j=4,5,6,7,8. a. OM is considering adding a distribution center to its supply chain. This center has unit shipping costs of pi(i=1,2,3) between factory i and the center and q. i (j=4,5,6,7,8) between the center and market j. With the new distribution center, OM can both ship items directly from factories to markets and ship items through the distribution center. Modify the above LP to include the center option so that OM can determine its effect on shipping costs. Please use the following, additional, decision variables: wii : units shipped from factory i to the distribution center (i=1,2,3) y,j : units shipped from the center to market j(j=4,5,6,7,8) b. Adding the distribution center to OM's supply chain has an annualized fixed cost of Q (\$/year). Either modify your LP from part a., or describe a strategy for using the previous models (original and part a.)., to consider this annualized fixed cost in OM's decision on adding the distribution center

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!