Question

Use the following scenario and data for questions 11 to 20 Brach Chemicals Inc. needs to build warehouses from where it can distribute its fertilizers to farmers. Three potential locations are considered although the management has not decided how many warehouses to build. The following table provides information about the fixed cost of operating each warehouse (including warehouse depreciation and operating cost for each planning period), the cost of shipping a ton of fertilizer from a potential warehouse to each of the 4 farmers, the planned capacity of each potential warehouse and the demand of each farmer. Farmers Potential Location Fixed Cost 2 Capacity 35000 24000 22 15 42000 38000 16 35500 32000 17 26 Demand 9500 6800 7200 5400 You are required to formulate an integer programming model to determine if a warehouse should be build at each of the potential locations and to determine the quantity to ship from a potential warehouse to a farmer so as to minimize the total cost.

Answer 1

solution:

Brach Chemical Inc. needs to build warehouses from where it can distribute its fertilizers to farmers.

19).

Correct answer is : the value of each yi, for i=1,2,3, in the final solution must be 0 or 1

20).

Correct answer is : All of the above

Reason: x24 = 5400 means y2 = 1 i,.e prospective warehouse is at location 2, 5400 tons of fertilizers shipped between warehouse 2 to farmer 4 and shipping cost = 5400*16 = 86400

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