DMOR Homework #5
Due:
Tuesday, November 20
th
in class
Question 1.
A computer chip company needs to supply cities depicted in the graph
below with computer chips.
The number of computer chips required is given in red
alongside the nodes (demands are in millions of chips).
The company can open up
distribution centers at a cost of $40 million per center.
At most one distribution center
can be opened in any city.
If a distribution center is located in a city, it can be used to
produce and ship at most 10 million chips to demand centers in its own city or to other
cities.
Shipping costs between cities are given by the blue numbers in the graph below.
Each shipping cost is in dollars, and is a perunit flow cost (e.g., shipping 2 million chips
from LA to DEN costs $10 million).
Finally, note that chips can be shipped through
cities if needed (e.g., chips can be sent from Denver to Boston via Chicago).
Formulate
and solve (using Excel) an integer program to minimize the cost of facility location plus
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 Fall '09
 VLADIMIRLBOGINSKI
 Konrad Zuse, Distribution center, CHiPs

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