NorthwestCaseStudy_Writeup_JingJingWu_YusiSang_XuXin

Wduchesne calgary in order to get the objective

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 23 variables as listed below: a:Spruce- Chicago b:Spruce- Dallas c:Spruce- New Orleans d:Spruce- Denver e:Spruce- San Francisco f:Naomee- Seattle g:Naomee- Chicago h:Naomee- Dallas i:Naomee- New Orleans j:Naomee- Denver k:Naomee- Los Angeles l:Naomee- San Francisco m:Naomee- Vancouver n:Naomee- Calgary o:Duchesne- Seattle p:Duchesne- Chicago TO 301 Section 005: Northwest Newsprint, Inc Case Study Group 137: Jing Jing Wu, Xin Xu, Yusi Sang q:Duchesne- Dallas r:Duchesne- New Orleans s:Duchesne- Denver t:Duchesne- Los Angeles u:Duchesne- San Francisco v:Duchesne- Vancouver w:Duchesne- Calgary In order to get the objective function, we need to calculate the profit margin on each link and add the sums together. The profit margin on each individual link can be calculated by using revenue per ton- production cost- shipping cost. For example, for Naomee Mills to Seattle, the profit margin= Revenue per ton($750)- Production cost ($415)- Shipping cost ($46.68)=288.32 The total profit margin is calculated as follows: Objective function= profit margin of each link * the tonnes of newsprints shipped from one specific mill to one specific city =a*270.23+...
View Full Document

Ask a homework question - tutors are online