QUIZ_03_021108_sol - minimizing the total cost n = number of distribution centers m = number of demand areas C i = production and shipping cost from

ISE310 Spring 2008 Session 7 02/06/08 Quiz 02 Name_______________________ Please do all your work on this paper. (Half a page or so) Company XYZ has selected to build 4 combined factory/distribution centers in the U.S. for one of their products. You know the production and shipping cost from each per unit. You also know the demand in each of the three areas of the U.S. that the company has divided the country into and the average distance from each distribution center to each area. Define your variables and write all the equations necessary to solve the problem of

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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...
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