Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. (Linear/Integer Programming: big-number constraints) A company has two suppliers (A and B) and three warehouses (1, 2, and 3). Unit Shipping Cost 1

image text in transcribed

4. (Linear/Integer Programming: big-number constraints) A company has two suppliers (A and B) and three warehouses (1, 2, and 3). Unit Shipping Cost 1 2 3 A 4 6 4 B 7 7 8 Supplier A Unit Production Cost 4 B 3 Warehouse 1 2 3 Sale Prices 18 17 15 The company can purchase from either A or B, or both A and B. If the company decides to purchase from supplier A, it needs to pay supplier A an upfront setup fee of $700; otherwise, the company does not need to pay the setup fee to supplier A. Similarly, if the company wants to purchase from supplier B, the upfront setup fee is $200. The maximum production capacity of each supplier is 150 units, and each warehouse requires at least 40 units. The objective is to determine which supplier(s) to use and to determine the shipping plan in order to maximize the profit. Formulate (do not solve) this problem as an LP problem. Hint: Consider using the following decision variables: Y = {0,1} denotes whether to use supplier A (YA = 1 means yes, Y = 0 means no), and YB = {0,1} denotes whether to use supplier B (YB = 1 means yes, YB = 0 means no).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Process

Authors: Lee Long

4th Edition

978-0201822939,0201822938

More Books

Students also viewed these General Management questions

Question

What was Aristotles approach to the soul body question?

Answered: 1 week ago