Unformatted text preview: minimizing the total cost. n = number of distribution centers m = number of demand areas C i = production and shipping cost from center i D j = demand in area j d ij = distance from distribution center I to market j Determine X ij – the quantity of product to be shipped from center i to market j Minimize the total cost = ∑∑ = = m j n i i ij ij c d X 1 1 s.t. demand satisfied in each market i m j ij D X ≥ ∑ , for i = 1,2,3 All X ij >= 0...
View Full Document
- Spring '06
- Economics, Distribution center, shipping cost