Formulate a mixed integer programming model

Assignment Help Supply Chain Management

Reference no: EM132313555

Assignment

The Tillman Company operates a plant in Cincinnati. Its annual capacity is 60,000 units. Product is shipped to regional distribution centers located in Philadelphia, Birmingham, and Dallas. Tillman plans to increase capacity by constructing a new plant in one or more of the following cities: Detroit, Bowling Green, Colorado Springs, or Davenport. The estimated annual fixed cost and the annual capacity for the four proposed plants are as follows:

Proposed Plant	Annual Fixed Cost	Annual Capacity
Detroit	$275,000	20,000
Bowling Green	$300,000	40,000
Colorado Springs	$275,000	60,000
Davenport	$500,000	80,000

The company's long-range planning group developed forecasts of the anticipated annual demand at the distribution centers as follows:

Distribution Center

Philadelphia

Annual Demand

60,000

Birmingham

40,000

Dallas

40,000

The shipping cost per unit from each plant to each distribution center is as follows:

		Distribution Centers
Plant Site	Philadelphia	Birmingham	Dallas
Detroit	5	2	3
Bowling Green	4	3	4
Colorado Springs	9	8	5
Davenport	11	4	2
Cincinnati	8	4	5

a. Formulate a mixed integer programming model that could be used to help Tillman determine which new plant or plants to open in order to satisfy anticipated demand.

b. Solve the model you formulated in part a. What is the optimal cost? What is the optimal set of plants to open?

c. Using the procedure discussed in BAN 6050 on the binary variables in your model, find a second best solution. What is the increase in cost versus the best solution from part b?

Attachment:- Assignment - Supply Chain.rar

Reference no: EM132313555

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Reviews

len2313555

5/29/2019 3:57:52 AM

Hello, I have a supply chain optimization problem in excel. I believe that there is an issue within my model somewhere because whenever I change my constraint on the number of plant locations, it states that there is no feasible solution.

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