Question: This problem should be solved with GAMS program. Can you solve it please. THANK YOU :) Zayzx Company of Zzyzx, California currently has a warehouse
Zayzx Company of Zzyzx, California currently has a warehouse in each of the following Baltimore, (B) Cheyenne, (C Salt Lake City, (D) Memphis and (E) Wichita. These warehouses supply customer regions throughout the U.S. It is convenient to aggregate customer areas the following cities: (I) Atlanta, (2) Boston, (3) Chicago Denver, (5) Omaha and ( Portland, Oregon. There is some feeling that Zzyzx is overwarehoused". That is, it may be able to save substantial fixed costs by closirig some warehouses ut unduly increasing transportation and service costs. Relevant data have been collected and cs: and consider the customers to be located in (0 witho assembled on a "per month" basis and are displayed below: Cost per Ton-Month Matrix Demand City Monthly Monthly Supply Fixed 6 Capacity Cost In Tons Warchouse $1675 $400 $685 S1630 S1160 $2800 18 1460 1940 970 100 495 120024 925 2400 1425500 950 800 27 380 1355 543 1045 665 232 22 922 1646 700 508 1797 31 $7,650 3,500 3,500 ,100 2,200 Monthly" Demand in108 12 6711 Tons For example, closing the warehouse at A (Baltimore) would result in a monthly fixed cost saving of $7.650. If 5 (Omaha) gets all of its monthly demand from E (Wichita), then the associated transportation cost for supplying Omaha is 7 311 = $2,177 per month. A customer need not get all of is supply from a single source. Such "multiple sourcing" may result from the limited capacity of each rehouse (G.g, Cheyenne can only process 24 tons per month. Should Zxyzx close any warehouses and, if so, which ones?)
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