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Supply Chain Management: Strategy, Planning, and Operation: Seventh Edition, Global Edition
Supply Chain Management: Strategy, Planning, and Operation: Seventh Edition, Global Edition
Chapter 5
Network Design in the
Supply Chain
1– b – a 1 b – a
d1 a and d 2
2 2
Figure 5-3 Cost Data (in Thousands of Dollars) and Demand Data
(in Millions of Units) for SunOil
cij = cost of producing and shipping one unit from plant i to market j
(cost includes production, inventory, transportation, and tariffs)
yi = 1 if plant i is open, 0 otherwise
n n m
Min fi y i cij xij
i 1 i 1 j 1
Subject to
x
i 1
ij D j for j 1, , m
m
x
j 1
ij K i y i for i 1, , n
xi=1
ij D j for j 1, ,m
x – xn y – yn
2 2
dn
Subject to
x
i 1
ij D j for j 1, ,m
m
x
j 1
ij K i for i 1, ,n
Subject to n
x
i 1
ij 1 for j 1, ,m
m
D x
j 1
j ij K i y i for i 1, ,n
xij ,y i 0,1
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More Complex Capacitated Plant Location
Model (2 of 2)
Table 5-3 Optimal Network Configuration for TelecomOptic
with Single Sourcing
h 1
hi
e 1
x
e 1
ej D j for j = 1, ,m
t
y i ,y e 0,1 ,xej ,x ie ,x hi 0
x
e 1
ie K i y i for i 1, ,n
n m
x x
i 1
ie
j 1
ej 0 for e 1, ,t