Scribd
Upload
236 views1 page

Network Design Example-Regional Facility Configuration For SunOil

This document discusses a network design problem for a supply chain management company called Sunoil. It provides cost matrices that show the production and transport costs per 1 million units between various supply regions and demand regions. It also provides fixed costs for two plant capacity options of 10 million units and 20 million units at each supply region. The goal is to determine the optimal facility locations and capacities to meet demand at minimum total cost.

Uploaded by

Nic Knight
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
236 views1 page

Network Design Example-Regional Facility Configuration For SunOil

This document discusses a network design problem for a supply chain management company called Sunoil. It provides cost matrices that show the production and transport costs per 1 million units between various supply regions and demand regions. It also provides fixed costs for two plant capacity options of 10 million units and 20 million units at each supply region. The goal is to determine the optimal facility locations and capacities to meet demand at minimum total cost.

Uploaded by

Nic Knight
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd
You are on page 1/ 1

Network Design in Supply Chain Management

SUNOIL PROBLEM OF REGIONAL FACILITY LOCATION


COST MATRIX ( costs are given in multiple dollar units which are uniform in the two cost matrices)
Demand Regions
Supply Regions Production &Transport Cost per 1,000,000 units
N. AmericaS. America Europe Asia Africa
North America 81 92 101 130 115
S. America 117 77 108 98 100
Europe 102 105 95 119 111
Asia 115 125 90 59 74
Africa 142 100 103 105 71
Demand 12 8 14 16 7

There are two options for plant capacities available, 10 million units and 20 million units.
Fixed costs for these are given below.
Fixed COST Fixed Low Fixed High
Matrix Cost Capacity Cost Capacity

North America 6000 10 9000 20


S. America 4500 10 6750 20
Europe 6500 10 9750 20
Asia 4100 10 6150 20
Africa 4000 10 6000 20

You might also like