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A large company which has five different departments is located in stanbul. The company is planning to move some of its departments out of istanbul.

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A large company which has five different departments is located in stanbul. The company is planning to move some of its departments out of istanbul. The alternative cities for relocation are Kocaeli and Sa- karya. Also a department may not be moved and continue being located in istanbul. Since the rental fee and the salaries of workers are lower in Kocaeli and Sakarya, benefits are derived from relocation. The benefits (in thousands of TL) obtained from each relocation are given in table I Table I. The benefits (in thousands of TL) of relocation Kocoeli 100 150 100 200 50 Benefits are derived from relocation however because of relocation the cost of communication betweern departments are increasing. In Table II, the quantities of communication between departments are given. Table II. Quantities of communication (in thousands of units) 10 14 15 12 20 The cost of communication per unit between cities are given in Table III. Table Ill. Cost per unit of communication (TL) stanbul Kocoali 14 stanbul Kocaa 13 The company wishes to minimize its yearly overall cost. Formulate a mathematical model to determine the locations of departments and solve your model with Gams. A large company which has five different departments is located in stanbul. The company is planning to move some of its departments out of istanbul. The alternative cities for relocation are Kocaeli and Sa- karya. Also a department may not be moved and continue being located in istanbul. Since the rental fee and the salaries of workers are lower in Kocaeli and Sakarya, benefits are derived from relocation. The benefits (in thousands of TL) obtained from each relocation are given in table I Table I. The benefits (in thousands of TL) of relocation Kocoeli 100 150 100 200 50 Benefits are derived from relocation however because of relocation the cost of communication betweern departments are increasing. In Table II, the quantities of communication between departments are given. Table II. Quantities of communication (in thousands of units) 10 14 15 12 20 The cost of communication per unit between cities are given in Table III. Table Ill. Cost per unit of communication (TL) stanbul Kocoali 14 stanbul Kocaa 13 The company wishes to minimize its yearly overall cost. Formulate a mathematical model to determine the locations of departments and solve your model with Gams

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