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  • Demand Region Production and Transportation Cost Per 1,000,000 Units (In $1000)

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    Cece
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    The document presents information about a supply chain optimization problem including production and transportation costs from various supply regions to meet demand in different regions. It provides costs, capacities, demands and defines decision variables for allocating production across supply regions to meet demand at minimum cost. The sample solution shows allocation of 37 million units across supply regions with a total cost of $23.7 million.

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    ch05_Sunoil

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    The document presents information about a supply chain optimization problem including production and transportation costs from various supply regions to meet demand in different regions. It provides costs, capacities, demands and defines decision variables for allocating production across supply regions to meet demand at minimum cost. The sample solution shows allocation of 37 million units across supply regions with a total cost of $23.7 million.

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    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
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    Download as xls, pdf, or txt
    26 views3 pages

    Demand Region Production and Transportation Cost Per 1,000,000 Units (In $1000)

    Uploaded by

    Cece
    The document presents information about a supply chain optimization problem including production and transportation costs from various supply regions to meet demand in different regions. It provides costs, capacities, demands and defines decision variables for allocating production across supply regions to meet demand at minimum cost. The sample solution shows allocation of 37 million units across supply regions with a total cost of $23.7 million.

    Copyright:

    © All Rights Reserved
    Download as XLS, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xls, pdf, or txt
    of 3

    Inputs - Costs, Capacities, Demands

    Demand Region
    Production and Transportation Cost per 1,000,000 Units (in $1000) Fixed Low Fixed High
    Supply Region N. America S. America Europe Asia Africa Cost ($) Capacity Cost ($) Capacity
    N. America 81 92 101 130 115 6,000 10 9,000 20
    S. America 117 77 108 98 100 4,500 10 6,750 20
    Europe 102 105 95 119 111 6,500 10 9,750 20
    Asia 115 125 90 59 74 4,100 10 6,150 20
    Africa 142 100 103 105 71 4,000 10 6,000 20
    Demand 12 8 14 16 7

    Decision Variables
    Demand Region - Production Allocation (1,000,000 units) Plants - LC Plants - HC
    Supply Region N. America S. America Europe Asia Africa (1=open) (1=open)
    N. America
    S. America
    Europe
    Asia
    Africa

    Constraints
    Supply Region Excess Capacity
    N. America 0
    S. America 0
    Europe 0
    Asia 0
    Africa 0
    N. America S. America Europe Asia Africa
    Unmet Demand 12 8 14 16 7

    Objective Function
    Cost = $ -

    SAMPLE PROBLEM: SUNOIL


    Inputs - Costs, Capacities, Demands
    Demand Region
    Production and Transportation Cost per 1,000,000 Units (in $1000) Fixed Low Fixed High
    Supply Region N. America S. America Europe Asia Africa Cost ($) Capacity Cost ($) Capacity
    N. America 81 92 101 130 115 6,000 10 9,000 20
    S. America 117 77 108 98 100 4,500 10 6,750 20
    Europe 102 105 95 119 111 6,500 10 9,750 20
    Asia 115 125 90 59 74 4,100 10 6,150 20
    Africa 142 100 103 105 71 4,000 10 6,000 20
    Demand 12 8 14 16 7

    Decision Variables
    Demand Region - Production Allocation (1,000,000 units) Plants - LC Plants - HC
    Supply Region N. America S. America Europe Asia Africa (1=open) (1=open)
    N. America 0 0 0 0 0 0 0
    S. America 12 8 0 0 0 0 1
    Europe 0 0 0 0 0 0 0
    Asia 0 0 4 16 0 0 1
    Africa 0 0 10 0 7 0 1

    Constraints
    Supply Region Excess Capacity
    N. America 0
    S. America 0
    Europe 0
    Asia 0
    Africa 3
    N. America S. America Europe Asia Africa
    Unmet Demand 0 0 0 0 0

    Objective Function
    Cost = $ 23,751.00

    SAMPLE PROBLEM: SUNOIL


    Inputs - Costs, Capacities, Demands
    Demand Region
    Production and Transportation Cost per 1,000,000 Units (in $1000) Fixed High Variable
    Supply Region N. America S. America Europe Asia Africa Cost ($) Capacity Cost
    N. America 81 92 101 130 115 9,000 20 5.50
    S. America 117 77 108 98 100 6,750 20 5.30
    Europe 102 705 95 119 111 9,750 20 6.00
    Asia 115 125 90 59 74 6,150 20 5.00
    Africa 142 100 103 105 71 6,000 20 5.10
    Demand 12 8 14 16 7 57
    Import Duties 0.03 0.05 0.15 0.22 0.25

    Variable Production Costs, Transportation Costs and Duties From Plants to Markets
    Shipment Cost ($/1,000,000 units)
    Supply Region N. America S. America Europe Asia Africa
    N. America 86.50 124.88 189.98 264.31 263.13
    S. America 136.09 82.30 180.92 200.28 216.00
    Europe 125.87 770.93 101.00 259.75 268.13
    Asia 132.83 151.88 155.38 64.00 175.63
    Africa 160.51 125.36 169.32 200.32 76.10

    Decision Variables
    Demand Region - Production Allocation (1,000,000 units) Plants - HC
    Supply Region N. America S. America Europe Asia Africa (1=open)
    N. America 0 0 0 0 0 0
    S. America 12 8 0 0 0 1
    Europe 0 0 0 0 0 0
    Asia 0 0 1 16 0 1
    Africa 0 0 13 0 7 1

    Constraints
    Supply Region Excess Capacity
    N. America 0
    S. America 0
    Europe 0
    Asia 3
    Africa 0
    N. America S. America Europe Asia Africa
    Unmet Demand 0 0 0 0 0

    Objective Function
    Cost = $ 25,104.70

    SAMPLE PROBLEM: SUNOIL (with DUTIES)

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