The following considerations also apply: There is an administrative cost of $5000 associated with setting up
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The following considerations also apply:
■ There is an administrative cost of $5000 associated with setting up a supplier’s account. For example, if Motorola uses three suppliers, it incurs an administrative cost of $15,000.
■ To ensure reliability, no supplier can supply more than 80% of Motorola’s demand for any product.
■ A supplier must supply an integer amount of each product it supplies.
Develop a linear integer model to help Motorola minimize the sum of its purchase and administrative costs.
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Related Book For
Practical Management Science, Revised
ISBN: 9781118373439
3rd Edition
Authors: Wayne L Winston, S. Christian Albright
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