INTEGER PROGRAMMING

Fixed Charge and Facility Location Example

Shipping Costs: Plants Projected Potatoes Selection
Farms A B C Harvest Shipped Constraints
1 0 0 11.2 11.2 11.2 0
2 2.4 8.1 0 10.5 10.5 0
3 0 0 0 12.8 0 0
4 0 1.9 2.8 9.3 4.7 -4.6
5 0 0 0 10.8 0 0
6 9.6 0 0 9.6 9.6 0
Production Capacity 12 10 14
Potatoes Shipped 12 10 14

Annual
Selection
Farm Fixed
Yi Cost Yi = 0 if farm i is not selected, and 1 if farm i is selected
1 1 405 Xij = potatoes (tons, 1,000s) shipped from farm i to plant j
2 1 390
3 0 450 where,
4 1 368 i = 1, 2, 3, 4, 5, 6 (Farm)
j = A, B, C (Plant)
5 0 520
6 1 465

Total Cost (Z) = 2082.30