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Demand Region Production, Inventory and Transportation Cost Per 1,000,000 Units

This document contains input data for a linear programming optimization model to determine the optimal production and transportation plan to meet product demands across 5 regions while minimizing costs. It provides production, inventory and transportation costs; supply and demand amounts for each region; plant capacities; and defines decision variables for production amounts and plant usage. The objective is to determine the production and transportation plan that meets all demands at minimum total cost, which includes fixed and variable costs.

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Kushal Kapoor
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57 views2 pages

Demand Region Production, Inventory and Transportation Cost Per 1,000,000 Units

This document contains input data for a linear programming optimization model to determine the optimal production and transportation plan to meet product demands across 5 regions while minimizing costs. It provides production, inventory and transportation costs; supply and demand amounts for each region; plant capacities; and defines decision variables for production amounts and plant usage. The objective is to determine the production and transportation plan that meets all demands at minimum total cost, which includes fixed and variable costs.

Uploaded by

Kushal Kapoor
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Inputs - Costs, Capacities, Demands

Demand Region
Production, Inventory and Transportation Cost per
1,000,000 Units
Supply Region

N. America S. America Europe

N. America
S. America
Europe
Asia
Africa
Demand(Dj)

81
117
102
115
142
12

92
77
105
125
100
8

Asia

101
108
95
90
103
14

Fixed(Fi)

Africa

130
98
119
59
105
16

Low(Ki)

Cost ($) in Capacity in


thousand million units
dollars per
per year
year
115
100
111
74
71
7

6,000
4,500
6,500
4,100
4,000

10
10
10
10
10

Plants(Low)
(1=open)
0
0
0
0
0

Plants(High)
(1=open)
0
0
0
0
0

Decision Variables

Supply Region
N. America
S. America
Europe
Asia
Africa

Demand Region - Production Allocation (10,00,000


Units)
N. America S. America Europe
Asia
Africa
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

0
0
0
0
0

Constraints
Supply Region
N. America
S. America
Europe
Asia
Africa

Excess Capacity
0
0
0
0
0
N. America S. America Europe
Asia
Unmet Demand
12
8
14
Objective Function
Cost =

Africa
16

Fixed (Fi)

High(Ki)

Cost ($) in Capacity in


thousand
million
dollars per
units per
year
year
9,000
6,750
9,750
6,150
6,000

20
20
20
20
20

B4:F8 are the variable


production, inventory and
transportation costs in
thousand of dollars
Demand in million of units

Total Cost= Fixed Cost + variable Cost


Sigma (Fi*Yi) from i=1 to n
Sigma (Fi*Yi) from i=1 to n
Decision Variable
Binary Varibale

Xij
Yi

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