Variable Cost ($) Fixed Cost Facility Product Product Product ($) Y Facility 1 Facility 2 8,000,000 1200 1600 900 6,000,000 1500 1800 1100 4,000,000 Facility 3 Facility 4 1700 1900 1900 1200 3,000,000 2200 1400 A company has 4 production facilities. Each facility is eligible to produce Product X, Product Y or Product Z, but it can only produce one of these products. The annual fixed cost of operating each facility and the variable cost of producing a product of each type at each facility are given in the table. The company must produce 5000 units of each type of product in a year. Formulate an IP to minimize the total annual production cost satisfying the following constraints; Each facility can produce only one type of product. 1) The total production of each type of product must be at a single facility. For instance, if any Products X are produced at facility 1, then all Products X must be produced there. 2) If facilities 3 and 4 are used, then facility 1 must also be used.

Operations Research : Applications and Algorithms
4th Edition
ISBN:9780534380588
Author:Wayne L. Winston
Publisher:Wayne L. Winston
Chapter3: Introduction To Linear Programming
Section3.9: Production Process Models
Problem 11P
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Variable Cost (S)
Fixed Cost
Facility
Product
Product
Product
(S)
Y
Facility 1
Facility 2
Facility 3
Facility 4
8,000,000
1200
1600
900
6,000,000
1500
1800
1100
4,000,000
1700
1900
1200
3,000,000
1900
2200
1400
A company has 4 production facilities.
Each facility is eligible to produce Product X, Product Y or Product Z,
but it can only produce one of these products.
The annual fixed cost of operating each facility and
the variable cost of producing a product of each type
at each facility are given in the table.
The company must produce 5000 units of each type of product in a year.
Formulate an IP to minimize the total annual production cost satisfying
the following constraints;
Each facility can produce only one type of product.
1) The total production of each type of product must be at a single facility.
For instance, if any Products X are produced at facility 1, then all Products
X must be produced there.
2) If facilities 3 and 4 are used, then facility 1 must also be used.
Transcribed Image Text:Variable Cost (S) Fixed Cost Facility Product Product Product (S) Y Facility 1 Facility 2 Facility 3 Facility 4 8,000,000 1200 1600 900 6,000,000 1500 1800 1100 4,000,000 1700 1900 1200 3,000,000 1900 2200 1400 A company has 4 production facilities. Each facility is eligible to produce Product X, Product Y or Product Z, but it can only produce one of these products. The annual fixed cost of operating each facility and the variable cost of producing a product of each type at each facility are given in the table. The company must produce 5000 units of each type of product in a year. Formulate an IP to minimize the total annual production cost satisfying the following constraints; Each facility can produce only one type of product. 1) The total production of each type of product must be at a single facility. For instance, if any Products X are produced at facility 1, then all Products X must be produced there. 2) If facilities 3 and 4 are used, then facility 1 must also be used.
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