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Week 5
Week 5
Week 5
Homework 5
Due date: 11/20
Student Name: GAJJALA, SAI TARUN TANDU
Student ID:
Goutte is a Canadian company manufacturing and distributing soft drinks. Manufacturing plants are
used to satisfy the demand of sales districts. The production process makes use of water, available
anywhere in Canada in an unlimited quantity at a negligible cost, and of sugar extracts which
compose a modest percentage of the total weight of the finished product. For this reason, supply
costs are negligible compared to finished product distribution costs. The management would like to
determine the plant configuration that minimizes the sum of weighted transportation costs and
fixed facility opening costs. The maximum acceptable distance between a potential plant and a sales
district is 75 km. Demand can be split among facilities. The fixed costs and capacities of potential
plant locations are given in Table 1 and sales district demands are given in Table 2. Table 3 provides
per-truckload-transportation costs between potential plants and sales districts, and Table 4
provides distances.
a) Draw a graph (network representation) of this logistics network, where the potential plant
locations and sales districts form the nodes of the network and arcs represent available
connections between the nodes.
Capacity Demand
Potential plant location
(hectolitres) Sales district (hectolitres)
22000 Brossard
Brossard 14000
24000 Granby
30000 Mascouche
Sainte-julie 8000
20000 Montreal
28000 Sherbrooke
30000 Terrebonne
Valleyfield 10000
20000 Valleyfield
Subject to:
3. Σ(X_ij) <= 1 for all i (a district can be served by at most one plant)
where:
- Y_j: Binary decision variable indicating whether to open plant j (1 if open, 0 if closed)
c) Implement and solve this model in Excel, provide a graphical representation of the
solution (similar to how we have depicted solutions in class). Note that because
demand can be split among plants if needed, the edges in your graph should be
labeled with decision variable values representing the fraction of demand from a
sales district that has been assigned to a particular plant.