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412LP-ProdDist[1] - respectively • Because of the diverse...

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Production and Distribution Example A firm needs to schedule production and distribution of its primary product to satisfy this month’s warehouse demand at 3 locations in a cost-effective manner. W1: 700 units W2: 800 units W3: 600 units The firm has 2 plants, PA and PB, with monthly production capacities of 1000 units and 1200 units, and unit production costs of $5.50/unit and $5.00/unit,
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Unformatted text preview: respectively • Because of the diverse locations of the plants and warehouse, unit transportation costs differ (but can be assumed linear). w1 w2 w3 pA $2.50 $0.50 $1.00 pB $1.50 $2.00 $3.00 Assume a single time period of 1 month, no prior warehouse inventory. How would we formulate an LP to solve this problem?...
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