Problem 1 Consider a company with three potential sites for installing its facilities warehouses and five demand points customer bases). Each site has a early action F, ie, an annual leasing expense that is incurred for using it. independently of the volume t serves. The volume that each facility can serve is limited to a gue maximum amount that may be handed yearly, M. Additionally, there is a transportini per un served from facility to the demand point i These data are shown in the table below Demand pointi 2 3 4 5 F. (5) M(units) Fasini CS unit) 4 5 6 10 1000 500 2 3 5 1200 600 4 900 400 1 8 3 8 too 4 7 4 3 Suppose each demand pointi has an uncertain annual demand de which can be modeled using three uncertainty scenarios described in the following table Demand pointi 1 2 3 4 5 Ponemanda Scenario 1 with probability P=0.3 80 270 250 160 180 Scenario 2 with probability P=0.5 75 230 300 110 190 Scenario 3 with probably P=02 55 280 150 175 160 The doctive is to minimize the sum of annual facility activation costs and transportation costs. The company and to make an immediate decision on what facilities to operate, whereas the decision on serving the customers' demand could be postponed until later when the actual annual demand is realized. Formulate a two-sage stochastic linear program to decide on the facilities to operate and the plan to satisfy the annual demands. Stredy the convalescence the objective function and constraints (20 pts) Problem 1 Consider a company with three potential sites for installing its facilities warehouses and five demand points customer bases). Each site has a early action F, ie, an annual leasing expense that is incurred for using it. independently of the volume t serves. The volume that each facility can serve is limited to a gue maximum amount that may be handed yearly, M. Additionally, there is a transportini per un served from facility to the demand point i These data are shown in the table below Demand pointi 2 3 4 5 F. (5) M(units) Fasini CS unit) 4 5 6 10 1000 500 2 3 5 1200 600 4 900 400 1 8 3 8 too 4 7 4 3 Suppose each demand pointi has an uncertain annual demand de which can be modeled using three uncertainty scenarios described in the following table Demand pointi 1 2 3 4 5 Ponemanda Scenario 1 with probability P=0.3 80 270 250 160 180 Scenario 2 with probability P=0.5 75 230 300 110 190 Scenario 3 with probably P=02 55 280 150 175 160 The doctive is to minimize the sum of annual facility activation costs and transportation costs. The company and to make an immediate decision on what facilities to operate, whereas the decision on serving the customers' demand could be postponed until later when the actual annual demand is realized. Formulate a two-sage stochastic linear program to decide on the facilities to operate and the plan to satisfy the annual demands. Stredy the convalescence the objective function and constraints (20 pts)