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The document provides information about supply and demand regions including costs and capacities. It defines decision variables for supply amounts from different regions and whether plants are open. It provides constraints and objective to minimize total cost.

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Idris
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28 views14 pages

SCM

The document provides information about supply and demand regions including costs and capacities. It defines decision variables for supply amounts from different regions and whether plants are open. It provides constraints and objective to minimize total cost.

Uploaded by

Idris
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 Low


Fixed Cost
Supply Region N.America S.America Europe Asia Africa Capacity
N.America 81 92 101 130 115 6000 10
S.America 117 77 108 98 100 4500 10
Europe 102 105 95 119 111 6500 10
Asia 115 125 90 59 74 4100 10
Africa 142 100 103 105 71 4000 10
Demand 12 8 14 16 7

Decision variables
Plants Plants
Supply Region N.America S.America Europe Asia Africa 1=open 1=open

N.America 0 0 0 0 0 0 0
S.America 12 8 0 0 0 0 1
Europe 0 0 0 0 0 0 0
Asia 0 0 4 16 0 0 1
Africa 0 0 10 0 7 0 1

Constrains
Supply Region Excess Capacity
N.America 0
S.America 0
Europe 0
Asia 0
Africa 3
N.America S.America Europe Asia Africa
Unmet Demand 0 0 0 0 0

Objective Function
Cost 23751
n _x0003_ number of potential plant locations/capacity (each
separate location)
m _x0003_ number of markets or demand points
Dj _x0003_ annual demand from market j
Ki _x0003_ potential capacity of plant i
fi _x0003_ annualized fixed cost of keeping plant i open
cij _x0003_ cost of producing and shipping one unit from plan
production, inventory, transportation, and tariffs)

yi _x0003_ 1 if plant i is open, 0 otherwise


xij _x0003_ quantity shipped from plant i to market j
Fixed Cost High
Capacity
9000 20
6750 20
9750 20
6150 20
6000 20

Xij

yi
ant locations/capacity (each level of capacity will count as a

demand points

of keeping plant i open


shipping one unit from plant i to market j (cost includes
tion, and tariffs)

m plant i to market j
n _x0003_ number of potential plant locations/capacity (each
separate location)
m _x0003_ number of markets or demand points
Dj _x0003_ annual demand from market j
Ki _x0003_ potential capacity of plant i
fi _x0003_ annualized fixed cost of keeping plant i open
cij _x0003_ cost of producing and shipping one unit from plan
production, inventory, transportation, and tariffs)

yi _x0003_ 1 if plant i is open, 0 otherwise


xij _x0003_ quantity shipped from plant i to market j
plant locations/capacity (each level of capacity will count as a

or demand points

t of keeping plant i open


nd shipping one unit from plant i to market j (cost includes
tation, and tariffs)

om plant i to market j
Inputs-Costs, capacities, Demands
Demand Region
Supply Fixed Cost High
N.America S.America Europe Asia Africa
Region Capacity
N.America 81 92 101 130 115 9000 20
S.America 117 77 108 98 100 6750 20
Europe 102 105 95 119 111 9750 20
Asia 115 125 90 59 74 6150 20
Africa 142 100 103 105 71 6000 20
Demand 12 8 14 16 7

Decision variables
Plants
Supply
N.America S.America Europe Asia Africa 1=open
Region
N.America 0 0 0 0 0 0
S.America 0 0 0 0 0 0
Europe 0 0 0 0 0 0
Asia 0 0 0 0 0 0
Africa 0 0 0 0 0 0

Constrains
Supply Region Excess Capacity
N.America 0
S.America 0
Europe 0
Asia 0
Africa 0
N.America S.America Europe Asia Africa
Unmet Deman 12 8 14 16 7

Objective Function
Cost 0
A company makes two products (say, P and Q) using two machines (say, A and B). Each unit
of P that is produced requires 50 minutes processing time on machine A and 30 minutes
processing time on machine B. Each unit of Q that is produced requires 24 minutes
processing time on machine A and 33 minutes processing time on machine B. Machine A is
going to be available for 40 hours and machine B is available for 35 hours. The profit per unit
of P is $25 and the profit per unit of Q is $30. Company policy is to determine the production
quantity of each product in such a way as to maximize the total profit given that the available
resources should not be exceeded
X1 X2 50x1+24x2 2400 25xa+30x2
30X1+33X2 2100
20x+10y+10z 2400
12x+28y+16z 2400
15x+6y+16z 2400
10x+15y 2400
45x+60y+50z

X 100
Y 40
Z 60
Cordinantes
Sources/Markets Trasnportation cost Quantity Xn Yn dn

Buffalo 0.9 500 700 1200 319


Supply
Memphis 0.95 300 250 600 515
Sources
St. Louis 0.85 700 225 825 460
Atlanta 1.5 225 600 500 391
Boston 1.5 150 1050 1200 487
Markets Jacksonville 1.5 250 800 300 594
Philadelphia 1.5 175 925 975 261
New York 1.5 300 1000 1080 375

x 681.304121131962
y 881.997020590826

TC 1265235

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