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Consider a facility location problem with 1,..., F potential facility sites, and 1,..., N demand locations. We denote fi as the fixed cost of

 

Consider a facility location problem with 1,..., F potential facility sites, and 1,..., N demand locations. We denote fi as the fixed cost of building a facility in location i, cij as the cost of shipping one unit of flow from facility i to customer j, and d; as the demand at location j for all ie {1,...,F), je {1,..., N). a) (Capacitated Facility Location) Define h, as the capacity of facility i, for all i E {1,...,F). Please write a generic formulation to determine the best building and shipping strategy to minimize the total cost. Hint: you need to define two sets of decision variables: some binary variables to determine whether to build a facility at a certain location, and some integer variables to represent the flow of products from facilities to demand locations. b) (Uncapacitated Facility Location) Now assume that each facility is uncapacitated (i.e., it can store products as many as you want). Please write a generic formulation to determine the best building and shipping strategy to minimize the total cost. Hint: you can use big-M coefficient in your model.

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