Scribd
Upload
67 views1 page

2

A company has two products handled by one factory and two distribution centers. It must decide which products each center handles and how to satisfy the demands of five major clients. The objective is to minimize total costs, which include fixed costs for assigning products to centers, fixed costs for assigning clients to centers, and unit shipping costs. The constraints ensure demand does not exceed supply capacity and is fully met for each client.

Uploaded by

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

2

A company has two products handled by one factory and two distribution centers. It must decide which products each center handles and how to satisfy the demands of five major clients. The objective is to minimize total costs, which include fixed costs for assigning products to centers, fixed costs for assigning clients to centers, and unit shipping costs. The constraints ensure demand does not exceed supply capacity and is fully met for each client.

Uploaded by

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

A company has two products k = 1,2, one factory, two distribution centers i =1,2 and five

major clients j =1,2,…,5 whose product demands djk are known. The company must
decide which products should be handled by each center and how each client should be
serviced. The problem is to minimize total costs, where the costs include:
1) A fixed cost fik if product k is handled by distribution center i
2) Fixed costs fijk if the demand of client j for product k is satisfied by center i
3) Unit shipping costs cijk per unit of product k shipped to client j via center i

2 2 5 5 2
Min: ∑ f ki∗y k + ∑ ∑ C ijk∗X ijk∗y kj + ∑ ∑ f ijk ∗y kj (k=1,2)
i=1 i=1 j=1 j=1 i=1

St:
5

∑ X kj ≤ S k (k =1,2)
j=1

∑ X kj ≥ d j ( j=1,2 ,… 5)
k =1

X ij >0

y k ={1,0 }

You might also like