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Unformatted text preview: , ame: OEM 2009 ESI 6323Models for Supply Chain Management Summer 2008 Quiz 1 June 2008 Lu '1\v 5et=t~ ~1 1 ~~ •• Problem 1 (40 points). The following problem considers a fourfacility, fivecustomer location problem. A network representation of this problem is shown below. Facilities Customers 2 3 4 5 The customer demand levels are as follows: . I Customer 1 1 ~ 3 ~ 5 I j Demand 150 50 100 50 150 0.. J ~p = 500 The perunit flow costs are shown in the following table: C· I m=5 Facility . J 1 2 3 4 r (a) What are the optimal facility locations and flows if the fixed facility location costs are F 1 = F 2 = F 3 = F 4 = 07 Use the table below to enter an optimal solution for the location decisions and flows.P i::: (F~ Customer Location 11 12 [3 14 1 5 Decision 0/1 1 { /5iJ () /50 Facility 2 I SO 3 I I I (00 4 I I I 50 ~ R "Ii + ~ c· x·' __I , (j IJ i:: I 1 J 2 , (b) Suppose the fixed facility location costs are F 1 = F 2 = F 3 = F 4 = F, for some F ;::O. At what value of F is it optimal to open three instead of four facilities?what value of F is it optimal to open three instead of four facilities?...
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 Summer '09
 Guan
 Supply Chain Management, The Table, facility location costs

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