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Goutte is a Canadian company manufacturing and distributing soft drinks. Manufacturing plants are used to satisfy the demand of sales districts. The production process makes

Goutte is a Canadian company manufacturing and distributing soft drinks. Manufacturing plants are used to satisfy the demand of sales districts. The production process makes use of water, available anywhere in Canada in an unlimited quantity at a negligible cost, and of sugar extracts which compose a modest percentage of the total weight of the finished product. For this reason, supply costs are negligible compared to finished product distribution costs. The management would like to determine the plant configuration that minimizes the sum of weighted transportation costs and fixed facility opening costs. The maximum acceptable distance between a potential plant and a sales district is 75 km. Demand can be split among facilities. The fixed costs and capacities of potential plant locations are given in Table 1 and sales district demands are given in Table 2. Table 3 provides per-truckload-transportation costs between potential plants and sales districts, and Table 4 provides distances.

  1. Draw a graph (network representation) of this logistics network, where the potential plant locations and sales districts form the nodes of the network and arcs represent available connections between the nodes.
  2. Formulate a mixed integer program appropriate for this problem and include it in your homework submission. This should be written using the type of math modeling notation we use in the lecture PPT (e.g., dicijXij); not in Excel.
  3. Implement and solve this model in Excel, provide a graphical representation of the solution (similar to how we have depicted solutions in class). Note that because demand can be split among plants if needed, the edges in your graph should be labeled with decision variable values representing the fraction of demand from a sales district that has been assigned to a particular plant.

Table 1: Fixed costs and capacities of potential plant locations

Potential plant location Fixed cost ($) Capacity (hectolitres)
Brossard 81,400 22,000
Granby 83,800 24,000
LaSalle 88,600 28,000
Mascouche 91,000 30,000
Montreal 79,000 20,000
Sainte-Julie 86,200 26,000
Sherbrooke 88,600 28,000
Terrebonne 91,000 30,000
Valleyfield 79,000 20,000
Verdun 80,200 21,000

Table 2: Demands of sales districts

Sales district Demand (hectolitres) Demand (truckloads)
Brossard 14,000 94
Granby 10,000 67
Sainte-Julie 8,000 54
Sherbrooke 12,000 80
Valleyfield 10,000 67
Verdun 9,000 60

Table 3: Per-truckload transportation costs

Brossard Granby Sainte- Julie Sher-brooke Valley-field Verdun
Brossard 0 140.02 55.94 256.50 133.58 21.53
Granby 140.02 0 130.64 142.05 265.88 154.01
LaSalle 38.27 170.94 86.85 287.22 87.40 21.53
Mascouche 100.65 208.47 97.34 344.45 171.12 83.17
Montreal 24.84 157.32 51.52 273.61 123.83 17.11
Sainte-Julie 55.94 130.64 0 254.29 173.88 70.10
Sherbrooke 256.50 142.05 254.29 0 382.54 270.30
Terrebonne 87.95 195.96 85.01 331.57 159.53 71.58
Valleyfield 133.58 265.88 173.88 382.54 0 116.66
Verdun 21.53 154.01 70.10 270.30 116.66 0

Table 4: Distances

Brossard Granby Sainte- Julie Sher-brooke Valley-field Verdun
Brossard 0 76.1 30.4 139.4 72.6 11.7
Granby 76.1 0 71 77.2 144.5 83.7
LaSalle 20.8 92.9 47.2 156.1 47.5 11.7
Mascouche 54.7 113.3 52.9 187.2 93 45.2
Montreal 13.5 85.5 28 148.7 67.3 9.3
Sainte-Julie 30.4 71 0 138.2 94.5 38.1
Sherbrooke 139.4 77.2 138.2 0 207.9 146.9
Terrebonne 47.8 106.5 46.2 180.2 86.7 38.9
Valleyfield 72.6 144.5 94.5 207.9 0 63.4
Verdun 11.7 83.7 38.1 146.9 63.4 0

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