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Assume that you have two manufacturing plants that need to make nine different products. Assume that annual demand for each product is 1 million units
Assume that you have two manufacturing plants that need to make nine different products. Assume that annual demand for each product is 1 million units and that to achieve economies of scale, you need to make at least 600,000 units at a single plant. You would also like to have each plant make the same number of units. What will happen to your model if you put in a constraint saying that plant capacity is 4.5 million units and at least 600,000 units of a product must be made at a plant?
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