Question: We now consider a modified version of example 2 covered in the synchronous class meeting on network design. We assume: There are two plants, three
We now consider a modified version of example 2 covered in the synchronous class meeting on network design.
We assume:
- There are two plants, three warehouses, and four market areas.
- The capacity of plant 2 is 100,000 while the capacity of plant 1 is unlimited.
- The demands of the four market areas are 60,000, 80,000, 150,000, and 60,000 respectively.
- The capacity of each warehouse is 200,000 if opened.
- The fixed warehouse costs for the three potential warehouses are 500,000, 600,000, and 450,000, respectively.
- You are allowed to open two warehouses only.
- The distribution cost ($) per unit is shown in the following table.
| Warehouse | P1 | P2 | C1 | C2 | C3 | C4 |
|---|---|---|---|---|---|---|
| W1 | 4 | 2 | 1 | 3 | 4 | 3 |
| W2 | 0 | 5 | 3 | 2 | 1 | 4 |
| W3 | 5 | 0 | 2 | 7 | 3 | 5 |
Requirements:
- Develop a spreadsheet model and apply Excel Solver to find out the optimal distribution strategies.
- Submit your Excel file with all Solver parameters.
- Include your first name in the file name.
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