Quiz01Solutions - OEM 2009 ESI 6323-Models for Supply Chain...

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OEM 2009 ESI 6323—Models for Supply Chain Management Summer 2008 Quiz 1 June 2008 Name: ________________________________________ 1
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Problem 1 (40 points). The following problem considers a four-facility, five-customer location problem. A network representation of this problem is shown below. The customer demand levels are as follows: Customer 1 2 3 4 5 Demand 150 50 100 50 150 The per-unit flow costs are shown in the following table: Customer 1 2 3 4 5 Facility 1 1 2 2 2 1 2 2 1 2 2 2 3 2 2 1 2 2 4 2 2 2 1 2 (a) What are the optimal facility locations and flows if the fixed facility location costs are F 1 = F 2 = F 3 = F 4 = F 5 = 0? Use the table below to enter an optimal solution for the location decisions and flows. Customer Location Decision (0/1) 1 2 3 4 5 Facility 1 1 150 150 2 1 50 3 1 100 4 1 50 2 1 2 3 4 1 2 3 4 5 Facilities Customers
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(b) Suppose he fixed facility location costs are F 1 = F 2 = F 3 = F 4 = F 5 = F, for some F ≥ 0. At what value of F is it optimal to open four instead of five facilities? Optimal solution with five facilities costs 5F + 500.
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Quiz01Solutions - OEM 2009 ESI 6323-Models for Supply Chain...

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