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    asif ali
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    This document provides input data for a linear programming model to optimize the location and production allocation decisions for a company called TelecomOptic. The data includes production costs and capacities for 5 potential supply cities and demands for 6 demand cities. The model will determine which plants to open, how much each plant should produce, and where the production should be shipped in order to minimize total costs. The model's optimal solution found a way to meet all demands at a total cost of $48,913 by opening all 5 plants and allocating production across them.

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    This document provides input data for a linear programming model to optimize the location and production allocation decisions for a company called TelecomOptic. The data includes production costs and capacities for 5 potential supply cities and demands for 6 demand cities. The model will determine which plants to open, how much each plant should produce, and where the production should be shipped in order to minimize total costs. The model's optimal solution found a way to meet all demands at a total cost of $48,913 by opening all 5 plants and allocating production across them.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    226 views18 pages

    Telecom Optic

    Uploaded by

    asif ali
    This document provides input data for a linear programming model to optimize the location and production allocation decisions for a company called TelecomOptic. The data includes production costs and capacities for 5 potential supply cities and demands for 6 demand cities. The model will determine which plants to open, how much each plant should produce, and where the production should be shipped in order to minimize total costs. The model's optimal solution found a way to meet all demands at a total cost of $48,913 by opening all 5 plants and allocating production across them.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 18

    HighOptic

    Inputs - Costs, Capacities, Demands (Table 5-2 for HighOptic)

    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Demand

    Demand City
    Production and Transportation Cost per 1000 Units
    Atlanta
    Boston
    Chicago
    Denver Omaha
    1,675
    400
    685
    1,630
    1,160
    1,460
    1,940
    970
    100
    495
    1,925
    2,400
    1,425
    500
    950
    380
    1,355
    543
    1,045
    665
    922
    1,646
    700
    508
    311
    10
    8
    14
    6
    7

    Portland
    2,800
    1,200
    800
    2,321
    1,797
    11

    Demand City - Production Allocation (1000 Units)


    Atlanta
    Boston
    Chicago
    Denver Omaha
    0
    0
    0
    0
    0
    0
    0
    0
    6
    7
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0

    Plants
    Portland (1=open)
    0
    0
    1
    11
    1
    0
    0

    Fixed
    Cost ($)
    7,650
    3,500
    5,000
    4,100
    2,200

    Decision Variables
    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Constraints
    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Unmet Demand

    Guess feasible?
    Excess Capacity
    18
    11
    16
    22
    31
    Atlanta
    Boston
    10
    8

    Objective Function
    Cost =
    $
    21,416
    Improvement on optimization =

    Chicago
    14

    Denver
    0

    yes

    Omaha
    0

    Cost of guess allocation =

    Portland
    0
    $
    $

    51
    (21,365)

    HighOptic

    Linear Program Formulations


    Model Inputs:

    n = Number of potential factory locations


    m = Number of markets or demand points
    Dj = Annual demand from market j
    Ki = Potential capacity of factory i
    fi = Annualized fixed cost of keeping factory i open
    cij = Cost of producing and shipping one unit from factory i to market j
    (cost includes production, inventory, and transportation)
    Decision Variables:

    yi = 1 if factory i is open, 0 otherwise.


    xij = Quantity shipped from factory i to market j

    HighOptic

    Capacity
    18
    24
    27
    22
    31

    HighOptic

    TelecomOne

    Inputs - Costs, Capacities, Demands (5-2 for TelecomOne)


    Demand City
    Production and Transportation Cost per 1000 Units
    Atlanta
    Boston Chicago
    Denver Omaha
    1,675
    400
    685
    1,630
    1,160
    1,460
    1,940
    970
    100
    495
    1,925
    2,400
    1,425
    500
    950
    380
    1,355
    543
    1,045
    665
    922
    1,646
    700
    508
    311
    10
    8
    14
    6
    7

    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Demand

    Portland
    2,800
    1,200
    800
    2,321
    1,797
    11

    Fixed
    Cost ($)
    7,650
    3,500
    5,000
    4,100
    2,200

    Decision Variables
    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Constraints
    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Unmet Demand

    Demand City - Production Allocation (1000 Units)


    Atlanta
    Boston Chicago
    Denver Omaha
    0
    8
    2
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    10
    0
    12
    0
    0
    0
    0
    0
    0
    0
    Guess feasible?

    Portland
    0
    0
    0
    0
    0

    yes

    Excess Capacity
    8
    24
    27
    0
    31
    Atlanta
    0

    Objective Function
    Cost =
    $
    42,786
    Improvement on optimization =

    Boston
    0

    Chicago
    0

    Denver
    6

    Omaha
    7

    Cost of guess allocation =

    Portland
    11
    $
    $

    13,950
    (28,836)

    Plants
    (1=open)
    1
    0
    0
    1
    1

    TelecomOne

    Linear Program Formulations


    Model Inputs:

    n = Number of potential factory locations


    m = Number of markets or demand points
    Dj = Annual demand from market j
    Ki = Potential capacity of factory i
    fi = Annualized fixed cost of keeping factory i open
    cij = Cost of producing and shipping one unit from factory i to market j
    (cost includes production, inventory, and transportation)
    Decision Variables:

    yi = 1 if factory i is open, 0 otherwise.


    xij = Quantity shipped from factory i to market j

    TelecomOne

    Capacity
    18
    24
    27
    22
    31

    TelecomOne

    Production Allocation

    Inputs - Costs, Capacities, Demands (for TelecomOptic)


    Demand City
    Production and Transportation Cost per 1000 Units
    Atlanta Boston Chicago Denver
    Omaha Portland
    1,675
    400
    685
    1,630
    1,160
    2,800
    1,460
    1,940
    970
    100
    495
    1,200
    1,925
    2,400
    1,425
    500
    950
    800
    380
    1,355
    543
    1,045
    665
    2,321
    922
    1,646
    700
    508
    311
    1,797
    10
    8
    14
    6
    7
    11

    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Demand

    Fixed
    Cost ($)
    7,650
    3,500
    5,000
    4,100
    2,200

    Decision Variables
    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Constraints
    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Unmet Demand

    Demand City - Production Allocation (1000 Units)


    Atlanta Boston Chicago Denver
    Omaha
    0
    8
    2
    0
    0
    0
    0
    0
    6
    0
    0
    0
    0
    0
    0
    10
    0
    12
    0
    0
    0
    0
    0
    0
    7
    Excess Capacity
    8
    18
    16
    0
    24
    Atlanta
    0

    Total Available Capacity

    Boston Chicago
    0
    0

    Denver
    0

    Omaha
    0

    Portland
    0
    0
    11
    0
    0

    Plants
    (1=open)
    1
    1
    1
    1
    1

    122

    Portland
    0

    Objective Function
    Cost =
    $
    48,913
    *This optimal cost given your plant location choices will be carried forward for future comparisions.

    Capacity
    18
    24
    27
    22
    31

    Production Allocation

    Linear Program Formulations


    Model Inputs:

    n = Number of potential factory locations


    m = Number of markets or demand points
    Dj = Annual demand from market j
    Ki = Potential capacity of factory i
    fi = Annualized fixed cost of keeping factory i open
    cij = Cost of producing and shipping one unit from factory i to market j
    (cost includes production, inventory, and transportation)
    Decision Variables:

    yi = 1 if factory i is open, 0 otherwise.


    xij = Quantity shipped from factory i to market j

    Location & Allocation

    Inputs - Costs, Capacities, Demands (for TelecomOptic)


    Demand City
    Production and Transportation Cost per 1000 Units
    Atlanta
    Boston Chicago
    Denver Omaha
    1,675
    400
    685
    1,630
    1,160
    1,460
    1,940
    970
    100
    495
    1,925
    2,400
    1,425
    500
    950
    380
    1,355
    543
    1,045
    665
    922
    1,646
    700
    508
    311
    10
    8
    14
    6
    7

    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Demand

    Portland
    2,800
    1,200
    800
    2,321
    1,797
    11

    Fixed
    Cost ($)
    7,650
    3,500
    5,000
    4,100
    2,200

    Decision Variables
    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Constraints
    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Unmet Demand

    Demand City - Production Allocation (1000 Units)


    Atlanta
    Boston Chicago
    Denver Omaha
    0
    8
    2
    0
    0
    0
    0
    0
    6
    7
    0
    0
    0
    0
    0
    10
    0
    12
    0
    0
    0
    0
    0
    0
    0

    Portland
    0
    11
    0
    0
    0

    Excess Capacity
    8
    0
    0
    0
    0
    Atlanta
    0

    Boston
    0

    Chicago
    0

    Denver
    0

    Omaha
    0

    Objective Function
    Cost =
    $
    47,401
    Cost with your Plant Choice=
    Improvement on location and allocation optimization =

    Portland
    0
    $
    $

    22,450
    (24,951)

    Plants
    (1=open)
    1
    1
    0
    1
    0

    Location & Allocation

    Linear Program Formulations


    Model Inputs:

    n = Number of potential factory locations


    m = Number of markets or demand points
    Dj = Annual demand from market j
    Ki = Potential capacity of factory i
    fi = Annualized fixed cost of keeping factory i open
    cij = Cost of producing and shipping one unit from factory i to market j
    (cost includes production, inventory, and transportation)
    Decision Variables:

    yi = 1 if factory i is open, 0 otherwise.


    xij = Quantity shipped from factory i to market j

    Location & Allocation

    Capacity
    18
    24
    27
    22
    31

    Location & Allocation

    Figure 5-9, 5-10, 5-11, & 5-12

    Inputs - Costs, Capacities, Demands (for TelecomOptic)

    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Demand

    Demand City
    Production and Transportation Cost per 1000 Units
    Atlanta Boston Chicago Denver Omaha
    Portland
    1,675
    400
    685
    1,630
    1,160
    2,800
    1,460
    1,940
    970
    100
    495
    1,200
    1,925
    2,400
    1,425
    500
    950
    800
    380
    1,355
    543
    1,045
    665
    2,321
    922
    1,646
    700
    508
    311
    1,797
    10
    8
    14
    6
    7
    11

    Fixed
    Cost ($)
    7,650
    3,500
    5,000
    4,100
    2,200

    Demand City Supplied (1 indicates Cities Supplied)


    Atlanta Boston Chicago Denver Omaha
    Portland
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0
    0

    Plants
    (1=open)
    0
    0
    0
    0
    0

    Decision Variables
    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita

    Resulting Production Allocation


    Demand City - Production Allocation (1000 Units)
    Supply City
    Atlanta Boston Chicago Denver Omaha
    Portland
    Baltimore
    0
    0
    0
    0
    0
    0
    Cheyenne
    0
    0
    0
    0
    0
    0
    Salt Lake
    0
    0
    0
    0
    0
    0
    Memphis
    0
    0
    0
    0
    0
    0
    Wichita
    0
    0
    0
    0
    0
    0
    Constraints
    Supply City
    Baltimore
    Cheyenne
    Salt Lake
    Memphis
    Wichita
    Demand

    Excess Capacity
    0
    0
    0
    0
    0
    Atlanta
    0

    Boston Chicago
    0
    0

    Objective Function
    Cost =
    $
    Cost penalty for single sourcing =

    Denver
    0

    Omaha
    0

    Portland
    0

    Optimal Location&Allocation Cost=

    $
    $

    Figure 5-9, 5-10, 5-11, & 5-12

    Linear Program Formulations


    Model Inputs:

    n = Number of potential factory locations


    m = Number of markets or demand points
    Dj = Annual demand from market j
    Ki = Potential capacity of factory i
    fi = Annualized fixed cost of keeping factory i open
    cij = Cost of producing and shipping one unit from factory i to market j
    (cost includes production, inventory, and transportation)
    Decision Variables:

    yi = 1 if factory i is open, 0 otherwise.


    xij = Quantity shipped from factory i to market j

    Figure 5-9, 5-10, 5-11, & 5-12

    Capacity
    18
    24
    27
    22
    31

    Figure 5-9, 5-10, 5-11, & 5-12

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