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Chapter 2 - Network Design
Chapter 2 - Network Design
Chapter 2 - Network Design
Demand Region
cij Production and Transportation cost per 1000000 units
Supply Region N.America S.America Europe Asia
N.America 81 92 101 130
S.America 117 77 108 98
Europe 102 105 95 119
Asia 115 125 90 59
Africa 142 100 103 105
Demand 12 8 14 16
Decision Variables
Demand Region
xij Production and Transportation cost per 1000000 units
Supply Region N.America S.America Europe Asia
N.America 0 0 0 0
S.America 12 8 0 0
Europe 0 0 0 0
Asia 0 0 4 16
Africa 0 0 10 0
Constraints
Excess
Supply Region Capacity
N.America 0
S.America 0
Europe 0
Asia 0
Africa 3
N.America S.America Europe Asia
Unmet demand 0 0 0 0
Objective Function
Cost = 23751
n Low Fixed High
st per 1000000 units Fixed Cost
capacity Cost Capacity
Africa
115 6000 10 9000 20
100 4500 10 6750 20
111 6500 10 9750 20
74 4100 10 6150 20
71 4000 10 6000 20
7
n
st per 1000000 units Plants (1= Plant
Africa open) (1=open) yi
0 0 0
0 0 1
0 0 0
0 0 1
7 0 1
Africa
0
Coordinates
Sources/Markets Transportation Cost $/Ton Mile (Fn) Quantity in Tons (Dn)
xn
Supply sources
Buffalo 0.9 500 700
Memphis 0.95 300 250
St. Louis 0.85 700 225
Markets
Atlanta 1.5 225 600
Boston 1.5 150 1050
Jacksonville 1.5 250 800
Philadelphia 1.5 175 925
NewYork 1.5 300 1000
Facility Location
x 681.303442813783
y 881.996687780147
Coordinates
yn
Distance Cost
1200 319 143,349
600 515 146,863
825 460 273,610
Decision Variables
Objective Function
Cost = 49,727
Monthly Fixed
Cost ('1000$) f