Question: Consider the following distribution problem. We are given a set of manufacturing facilitiesM, a set of warehouses W and a set of customers S. Each
Consider the following distribution problem. We are given a set of manufacturing facilitiesM, a set of warehouses W and a set of customers S. Each warehouse and each customer has a limit on the amount that can be stored at the facility. Each customer has forecasted demands for a single product for the next T periods and transportation cost between the facilities is a linear function of the amount delivered. Transportation cost per item may change from one period to the next. Inventory holding cost is charged on items carried at a facility from one period to the next. How would you design a delivery schedule that does not allow for shortages?
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