# HW2.pdf - INDE 4315 Homework 2 Instructor Dr Eylem Tekin...

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Chapter 3 / Exercise 4
Finite Mathematics for the Managerial, Life, and Social Sciences: An Applied Approach
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INDE 4315 Homework 2 Instructor: Dr. Eylem Tekin Due on: March 10, 2016 1) SC Consulting, a supply chain consulting firm, must decide on the location of its home offices. Its clients are located primarily in Washington, Oregon, California, Idaho and Nevada. There are three potential sites for home offices: Los Angeles, Tulsa, and Denver. The annual fixed cost of locating an office in Los Angeles is \$165,000, Tulsa is \$130,000, and Denver is \$140,000. The expected number of trips to each state each year, and the travel costs from each potential site are given in the following table. Each consultant is expected to take at most 25 trips each year. a) Assume that there are no restrictions on the number of consultants assigned to a home office (site). The goal is to minimize the sum of fixed costs and annual travel costs by deciding where the home offices should be located and how many consultants should be assigned to each home office. How would you model this problem using a mixed integer program? i. Define the decision variables clearly. ii.
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Chapter 3 / Exercise 4
Finite Mathematics for the Managerial, Life, and Social Sciences: An Applied Approach
Tan
Expert Verified