The Ultimate Company operates five plants in Cicero, IL, Oshkosh, WI, Omaha, NE, Terre Haute, IN, &
Question:
The Ultimate Company operates five plants in Cicero, IL, Oshkosh, WI, Omaha, NE, Terre Haute, IN, & St. Charles, MN. The company ships products from it plants to its distribution centers (DCs) in Lincoln, NE and Atlanta, GA. You are given the data below regarding plant capacities, annual fixed costs for the five plants (incurred only if the plant ships greater than 0 units), shipping cost per unit, and demand at each DC. Formulate a model to determine which plants to use to minimize total cost.
Shipping Cost/Unit to DC | ||||
Plant | Annual Fixed Cost | Lincoln DC | Atlanta DC | Plant Capacity |
Cicero | $2,500,000 | $6 | $7 | 7,000 |
Oshkosh | $1,600,000 | $8 | $9 | 5,000 |
Omaha | $2,100,000 | $13 | $11 | 6,000 |
Terre Haute | $1,500,000 | $7 | $5 | 8,000 |
St. Charles | $900,000 | $5 | $14 | 6,150 |
DC Demand = | 12,500 | 15,000 |
Decision Variables:
Objective Function:
Constraints:
Additional Work for Constraints:
Business Statistics A Decision Making Approach
ISBN: 978-0134496498
10th edition
Authors: David F. Groebner, Patrick W. Shannon, Phillip C. Fry