Solutions_to_Facility_Location_Problems

Solutions_to_Facility_Location_Problems - Equate total...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
DS 412 Solutions to Facility Location Problems Prof Uday 1. Let V = Volume Equate Total Costs for every pair of locations. X & Y: 500,000 + 27V = 540,000 + 25V → V = 20,000 Y & Z: 540,000 + 25V = 450,000 + 31V → V = 15,000 Z & X: 450,000 + 31V = 500,000 + 27V → V = 12,500 Total Cost Location Range of Volumes X 12,500 – 20,000 Y ≥ 20,000 Z ≤ 12,500
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2. Let V = Volume
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Equate total profit for the two locations. 52V 350,000 32V = 48V 300,000 30V V = 25,000 Find the breakeven volume for each location. Location X: 52V 350,000 32V = 0 V = 17,500 Location Y: 48V 300,000 30V = 0 V = 16,667 Location Range of volumes X >= 25,000 Y 16,667 25,000...
View Full Document

This note was uploaded on 11/04/2011 for the course DS 412 taught by Professor Eng during the Fall '07 term at S.F. State.

Page1 / 2

Solutions_to_Facility_Location_Problems - Equate total...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online