Procurement and Supply Chain Management

Requirements: Explain what the quantities in the expression represent

3.1. Objective functions The first objective function in Eq. (1) aims to minimize the total costs. There are four main sources of costs including establishment costs of new facilities (Eq. (2)), procurement costs (Eq. (3)), processing costs (Eq. (4)), and transportation costs (Eq. (5)). In establishment costs, it is assumed that new disassembly centers and DCs can be added to the existing forward flow. In procurement costs, selling recycled materials is an income source that is formulated with a negative sign. Transpor- tation costs depend on the type of vehicle, the distance between facil- ities, and the shipped quantities. Min Objl = Obj15st + Objicu + Obj1Pro + ObjlTra (1) 94 9 Obj1Est = EE_feeYE + Eff; YF; + fhn YHn TE + fiYI; + Ef;YJ; + EfkxYK * eet 9 EQ heH iel JEJ KEK + flYL + fmm YMm + Efn, YN, IEL MEM NEN () (2) Obj1Pcu = EE cad'dXAE 'd + E E EcbbdXBEB'de d'EA dED EE! b'eB deD E + EE CCdXCE.de C'EC SED EE - pagKOako Activate Windows a'EA KEK EO Go to Setting (3) ctivate + + + , Ce qe E ET jef geG heHie hellier Obj 1" XEF, +