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Capacitated Plant Location Model: CAPLOC

The document summarizes a capacitated plant location model optimization problem. There are five potential plant locations that can be chosen from to supply products to seven customer locations, with each plant having a monthly operating cost and maximum shipping capacity. The goal is to determine which plant(s) to open and how much product to allocate from each plant to each customer to minimize total shipping and plant operating costs, without exceeding any plant's capacity. Students are asked to find the optimal solution to this capacitated plant location problem.

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Udayan Bhattacharya
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195 views1 page

Capacitated Plant Location Model: CAPLOC

The document summarizes a capacitated plant location model optimization problem. There are five potential plant locations that can be chosen from to supply products to seven customer locations, with each plant having a monthly operating cost and maximum shipping capacity. The goal is to determine which plant(s) to open and how much product to allocate from each plant to each customer to minimize total shipping and plant operating costs, without exceeding any plant's capacity. Students are asked to find the optimal solution to this capacitated plant location problem.

Uploaded by

Udayan Bhattacharya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Institute of Management Technology, Nagpur

BATCH PGDM (2014-16)


Term-II
ASSIGNMENT Section E
Subject Management Science Models
______________________________________________________________________
Logistics Models
Capacitated Plant Location Model: CAPLOC
Background
The capacitated plant location model is a generalization of the transportation model.
Capacitated plant location problem allows greater latitude of decision making in that
the points of origin (plant locations) are variable. Manufacturers and wholesale
businesses are likely to encounter problems of this sort in matching existing customer
demand to product availability and minimizing transportation costs.
The Problem in Words
Your firm has a choice of five locations to operate a manufacturing facility and seven
customers exist with a known demand for your product. Each potential plant location
has an associated monthly operating cost, and shipping routes to the demand cities have
varying costs. In addition, each potential plant will have a shipping capacity that must
not be exceeded. You need to determine what plant(s) to open and how much of a
product to send from each open plant to each customer to minimize total shipping costs
and fixed plant operating costs.
Find the optimal solution.
Note Answer/data found same shall be considered as copied & will be graded Zero.
Submission date for the above said assignment is Friday, 12.12.2014, latest by 5.00
pm in APO office.
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