Overview More Plans Resources Status and follow-up Participants INE2008 (2) Operatio... Question 4 Future Plastics manufactures plastic products for industrial use worldwide. In order to meet demand, they are considering setting up a facility in each region in order to lower transportation cost and to possibly avoid duties that could be imposed if the product is imported from another region. The disadvantage of this approach is that plants are sized to meet local demand and may not fully exploit economies of scale. Therefore, Future Plastics is also interested in determining the appropriate size of the facility to build in each location and are choosing between facilities with capacities of 5 or 10 million. The fixed costs of each facility as well as the cost of shipping between regions is shown in the table below. The decision variables are defined as follows: Xij = quantity shipped from supply region i to demand regionj. i = 1, 2, 3, 4 and ) = 1, 2, 3, 4. Yik = 1 if facility kis selected for supply region i; 0 otherwise, where i = 1, 2, 3, 4 for each supply region; k=1 (low capacity facility) or 2 (high capacity facility) Low Capacity High Capacity Demand Region Production and Transportation Cost per 1,000,000 Units North South South Europe America America Asia Fixed Cost Capacity Supply Region Fixed Cost Capacity 10 4,500 5 40 51 45 3,000 65 North America . ENG 18:33 23.06.2020 South Si e Aramak iin buraya yazn NO Fo ES F fe 7 8 3 4 a U T R E North America 40 45 51 65 3,000 5 4,500 10 South America 51 57 47 60 3,200 un 4,800 10 South Asia 58 63 45 31 2,000 3,000 10 Europe 71 50 51 53 1,800 2,700 10 Demand 6 4 7 8 The constraint for the North American supply region is: Your answer: O X11 + X21 + X31 + X34 - 5Y11 - 10421 30 X11 + X12 + X13 + X14 - 5Y11 - 10Y12 0 O X11 + X12 + X13 + X14 - 3200411 - 4800Y12 s 0 BI Aramak iin buraya yazn Prisc F10 FD F8 & LILIPUU Demand 6. 4. 7 8. The constraint for the North American supply region is: Your answer: O X11 + X21 + X31 + X34 - 5Y11 - 10Y21 s 0 X11 + X12 + X13 + X14 - 5Y11 - 10412 0 X11 + X12 + X13 + X14 - 3200411 - 4800Y12